Cummings derides 'ignorant and apathetic' competitors

by Ben Abbott14 Feb 2012

The Commonwealth Bank has labelled competitors that do not segment their accredited brokers as "ignorant and apathetic" when it comes to their broker customers' clients.

Following moves from NAB Broker to scuttle its star segmentation strategy which it called 'obsolete' following the transition to NCCP, CBA has lambasted non-segmentation commitments.

CBA executive general manager of third party and mobile banking, Kathy Cummings, said in her view, organisations who do not segment are ignorant and apathetic when it comes to clients.

"Customers are increasingly financially savvy and actually demand a point of difference for brokers to compete for their business," Cummings said.

"This dictates a corresponding need for us as manufacturers and as partners to brokers. Segmentation demonstrates an in-depth understanding of a broker’s business goals and aspirations," she said.

The Commonwealth Bank segments its brokers into a top tier Diamond category, followed by Gold, Silver, Bronze and Mass Market brokers. Diamonds are offered premium service levels, education and other partner benefits, which Cummings said demonstrates "commitment to meeting their business needs".

Cummings questioned the quality of segmentation strategies which she said had followed CBA's initiative, saying other lenders had pursued these strategies only with "mixed success".

NAB Broker recently confirmed that it will not implement a new segmentation strategy. Meanwhile, ANZ has consistently maintained that it does not, and will not segment its broker base.

Other lenders such as Suncorp and Citibank are committed to segmentation offerings, while Macquarie Bank has said that it will continue to offer the same service to all its brokers.

Non-banks have recently followed in the footsteps of the majors, with Homeloans creating its 'elite broker circle' segment to partner with its top tier brokers.

Related stories:

MacRae stands firm on segmentation

Red carpet strategy brings better business: Lee


  • by ChrisC 14/02/2012 9:42:44 AM

    I am by no means any less qualified or professional in my dealings than those brokers the CBA has elected to segment.

  • by Country Broker 14/02/2012 9:43:51 AM

    Maybe aggregators and brokers should segment all the lenders on their lending panels. If we did that where would we rank the CBA ?? Despite these comments and the lack of trailers paybale in the first year, they are worth dealing with, their call centres are helpful and the website is good, products are OK especialy for a low deposit application.

  • by Paul Gollan 14/02/2012 9:56:05 AM

    Segmentation alienates brokers, not just the ones that get segmented out the back door. EVERY broker should receive at least a minimum acceptable service standard if they hold an accreditation with a lender. ANZ does not segment and it does not seem to be affecting their volumes or market share. Disclaimer: The author owns shares in ANZ & NAB.