Newly-badged Heritage Bank is set to expand its broker distribution nationwide, in what chief executive John Minz has called an "evolution" of the company's strategy.
The mutual bank has announced it will now distribute through brokers in Tasmania, the Northern Territory and WA, adding to its East Coast network. Minz said the move will bring additional scale as Heritage tries to expand its footprint.
"We first started distribution through the broker channel 15 years ago, and we've had distribution across the Eastern seaboard for all 15 of those years. This is a purposeful move to expand the broker channel, and for us it's another evolution," he told Australian BrokerNews.
Heritage pulled away from broker distribution during the GFC, cutting ties with all but a handful of aggregators. But Minz said the mutual now sits on the panel of eight of the top 10 broker groups, and that the groups it cut off were not producing volumes.
"The organisations that we no longer could do business with are those that weren't giving us any volume anyhow. We came back to 10 and we've added two new broker groups to that," he said.
Minz also tipped that Heritage may become even more active in the broker channel in the future.
"We can adjust that number over time with our expanded geographic exposure. There's no firm decision on what the magic number is. It's about relationships for us, and providing meaningful relationships for those groups who provide business to Heritage," he said.
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