Brokers have welcomed changes to regional bank Suncorp's commission structure, which they argue is indicative of a broader shift towards simplicity.
ACA Mortgage Solution’s Raymond Xue said overall, Suncorp now presented a good offering compared with the major banks.
“I will keep supporting Suncorp, as their products are good, their BDMs are very supportive, and right now with their simplified trail and commission structure it gives us more incentive and encourages us to write more Suncorp business,” he said.
“They are being very aggressive at the moment, they want to grab more market share, and this is a great chance of them to grow that new business.”
Xue added Suncorp’s push to open new branches – including one in Sydney’s Chinatown – was a “very good move” that would allow his Asian client base easier access to the bank.
Xue said Suncorp’s move comes in tandem with NAB Broker’s decision to end its star rating system, meaning that structures were becoming less restrictive and complex.
“I think it’s a trend towards simpler commissions, and that makes it easier for me to generate new business,” he said.
The Finance Professionals’ Kiran Saldanha agreed there was a push towards simplicity. “Generally it has gone so complicated with all the lenders,” he said.
Moves including the Suncorp commission change, NAB Broker’s star rating system changes and St. George’s reintroduction of BDMs all showed banks were paying attention, he said.
“All lenders are showing they need the third party channel to put them where they are.”
At the time the changes were made, Suncorp head of intermediaries Steven Heavey said the new commission structure would remove 'barriers and complexities" for its brokers.
The changes included the introduction of year-one trail, payment of commission on contsruction loans and a levelling of commissions for fixed and variable loans, as well as an upfront bonus.
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