Non-major dangles commission sweetener

by Adam Smith28 Feb 2013

 

A non-major bank is offering a commission sweetener to brokers who hit volume targets.
 
ME Bank has announced it will offer a commission bonus to brokers with settlements greater than $1m accumulated between 1 March and 30 June. The bank's national manager of brokers, Stewart Saunders, said the move was designed to generate excitement among brokers.
 
"We’re also hoping to create a buzz in the industry, highlighting how fairer banking resonates with customers and can help brokers win more business," he said.
 
An ME Bank spokesman told Australian Broker the commission bonus would be 10bps for settlements from $1m to $1,999,999, 20bps for settlements from $2m to $2,999,999 and 30bps for settlements $3m and above.
 
Saunders said the bonus was also meant to "thank brokers for their support during our first year in the broker market."
 
The bank re-entered the broker market in November 2011 after having pulled back during the GFC. Saunders said ME Bank was targeting aggressive growth in its mortgage business.
 
“To achieve this we will continue to be very competitive on rates and to embrace the broker channel. Our brokers are also our customers so they get fairer treatment too, which means giving all our brokers equal access to BDMs and credit teams," he said.

COMMENTS

  • by Rex Wood 28/02/2013 8:49:46 AM

    Interesting... if this were the an insurance company this would be illegal after July 1 under FOFA. How long before they wrap lending into the fold?

  • by Stephen Dinte 28/02/2013 12:00:34 PM

    I like ME and their offering, however Stewart needs to consider NCCP and specifically the issue of "conflict of interest". This type of promotion is potentially dangerous.