Diamond broker: Segmentation averts blockages

by Adam Smith16 Feb 2012

A Diamond broker has praised segmentation programs, and called CBA's segmentation policy the best in the market.

Commenting on the popular Australian BrokerNews forum, MPA Top 100 Broker James Green of Oxygen Home Loans defended bank segmentation policies.

"It’s simply wrong to put a high performing broker that rarely makes mistakes, behind another broker that creates blockages and slows the whole production line down," Green wrote.

Green praised Commonwealth Bank's segmentation program, which he called the best in the market.

"CBA has probably the best segmentation program in the market. I personally have seen the benefits of the CBA Diamond service offering and don’t know what we would do without it," he said.

Green also defended Westpac's Advantage + service, calling it "outstanding". He said segmentation was critical to reward top performing brokers.

"Segmentation is important because low volume and inexperienced brokers cause blockages. Our experienced team can’t afford to have an urgent buyer [or] loan held up by these blockages," he said.

The majority of commenters on the Australian BrokerNews forums took aim at segmentation programs, criticising them for penalising borrowers who might be subject to lower tier service.

Related stories:

Westpac to overhaul top tier segments

Cummings derides 'ignorant and apathetic' competitors

MacRae stands firm on segmentation

COMMENTS

  • by Coast Broker 16/02/2012 10:43:42 AM

    I agree with James Green's on only one part of his comments being about a broker that is not experienced slowing up the channel for all brokers. However to qualify to be one of these top brokers with a lender you must be writing the majority of your business to that Bank. That being the case you may as well go and work for that lender as you would not be good at knowing the niches and policies of the other lenders. Are you giving impartial advise also is a question that needs to be answered with NCCP requirements. I would hardly see ASIC saying it was okay to a Diamond Broker to write the majority of your business to CBA just so you can keep you Diamond Status. By the way I have worked in the industry for over 30 years and have worked for lenders assessing and approving Broker introduced loans.

  • by Steve 16/02/2012 12:03:32 PM

    James should be careful making sweeping generalizations about low volume or inexperienced brokers. There are different business models & low volumes does not necessarily equate to low quality business.

  • by ozboy 16/02/2012 12:11:30 PM

    "Segmentation is important because low volume and inexperienced brokers cause blockages. Our experienced team can’t afford to have an urgent buyer [or] loan held up by these blockages," he said.

    I would disagree with this, it's another of those unquantified statements like branches are cheaper than brokers. Where is the proof? Online lodging can assist, clear simple procedures can assist, credit staff who know their own policies can assist and pushing back to that particular broker can assist.

    CBA has on many occasions used that statement but there has been very little follow up or proof to confirm what is said. I get it that your top performers should get preferential treatment that's good business sense but to justify it by constantly repeating an unsubstantiated line doesn't make it true.

    There is nothing wrong with segmentation or non segmentation it is a business operation each with pro's and con's, I am just getting a little sick and tired of the public put downs of others so a few can feel important.