Loan Market’s director of sales Mark de Martino hit back at comments made yesterday regarding a fee-for-service model, calling it an “insult to brokers” and not a way to legitimise the industry.
Yesterday, analyst Max Franchitto claimed brokers should consider charging a fee, or risk looking like “mere sales reps for their favourite banks.”
In response, De Martino told Australian Broker Online the comments were unfounded, and that good service underpins the brokers’ ethos.
“It almost reads that we have to create legitimacy in our industry, in our business, by charging a fee for service. Now I think the industry has a hell of a lot more legitimacy than that,” he said.
“If you look like a sales rep for a bank, it’s because you’re not providing great customer service. It’s because you’re not being impartial.”
“Great brokers will provide great service, no matter whether they’re charging a fee or not. That’s playing out in the figures, in the market share, that the broker figures are going up.”
He admitted there were occasions when charging a fee was appropriate, including during commercial deals, or when the banks were not offering any commission.
“Sometimes it’s as simple as the broker’s costs not being covered, and customers are happy to wear that. Customers are reasonable people,” he said.