A major bank has said it will extend a commission incentive that has seen brokers receiving an extra 10bps upfront.
Westpac general manager of broker distribution Tony MacRae has told Australian Broker that the bank will extend a program it launched in June to offer volume incentives to aggregators. The program has seen members of aggregators who hit the targets receive an extra 10bps of upfront commission on Westpac deals, regardless of their individual volumes through the bank. Originally slated to run through the end of September, MacRae said the program will now be extended through the end of March.
"The program has been received exceptionally well, and I think it's a testament to how it's been received and its success is that the reaction to it is this extension," MacRae said.
MacRae said the program had already proven valuable to the bank as it operates in an increasingly competive home loan market.
"We've seen a 14% uplift in applications, and we've seen most of the aggregators take part, particularly the tier one top aggregators."
MacRae also touted a number of service improvements, including the addition of four BDMs nationwide, a 12-month BDM training course leading to professionally recognised qualifications and a platinum credit service available to the bank's top tier brokers, giving them direct access to credit managers and case management priority. All of the improvements, MacRae indicated, were reflective of an increasingly competitive home loan market.
"Undoubtedly, competition for all home loan business is as strong as it has ever been, and brokers are an important and clear part of that marketplace. We're all looking for new and innovative ways to be able to win broker business," MacRae said.