Westpac has defended the viability of mortgage broker segmentation models, following a recent decision from competitor NAB to scrap a model that offered a tiered service proposition.
Westpac general manager of mortgage broker distribution, Tony MacRae, said the bank remains committed to its segmentation strategy despite different strategies from other major lenders.
"I think we should acknowledge that across the major lenders, we each have different business strategies, and this has meant we will all have varying viewpoints and opinions about the use of segmentation models," he said. "Westpac is committed to our segmentation strategy."
MacRae said Westpac aims to develop long-term partnerships and provide value to top tier brokers.
"This involves recognising those brokers that have supported us for a long period. This is simply about value for value, and we are keenly aware that high performing brokers want to be recognised for their contribution to their lender partner’s ongoing success," MacRae said.
Westpac currently segments its top tier of brokers into an Advantage Plus offering (or A+, as it is known by brokers). They are offered faster service than other Westpac accredited brokers.
"We understand the value and recognise the efforts they continually make to build strong relationships right across Westpac, specifically with both our local retail and mortgage broker businesses. Understanding the overall value these brokers bring to Westpac is very important to this priority broker segment."
MacRae added that is base broker service proposition remains market lead-in, and those brokers in a higher segment "get an even higher level of service".
He said across the board the bank pushes its business to provide a quicker error free service, which is our key proposition as a major lender partner to brokers.
Red carpet strategy brings better business: Lee