Review: NAB Broker revamps segmentation

by Ben Abbott29 Nov 2011

NAB Broker will pay 65 basis points up-front to all brokers from 1 January 2012, as part of a wholesale change to its broker channel segmentation strategy.

As part of a revamp of the bank's broker star rating system, the group has said that all brokers will be eligible for 65 basis points upfront commission from the beginning of next year.

All brokers will also now have access to features previously only available to '4 Star' brokers, including access to online valuations and 90+% LVRs.

General manager NAB broker distribution John Flavell said the the bank had decided to evolve its star ratings system because changes in the market meant the previous system had become outdated. He said the advent of NCCP and licensing had rendered the previous star system's education benchmarks obsolete, while most brokers were also hitting quality targets. Flavell said conversion rates for broker-originated loans were "the best ever", while arrears were at their lowest.

“While our Star Ratings system has served us and our broker partners very well, the introduction of NCCP legislation has effectively lifted the bar on these measures across the industry and now is a good time to seek feedback from our broker partners on how we can add to and evolve this offering.”

NAB Broker has flagged a series of workshops and focus groups with brokers and aggregators in coming months where it will seek feedback on its current proposition.

Flavell has confirmed that NAB Broker's ramped trail commission structure will remain unchanged.


  • by Bruce Finch 28/11/2011 2:09:50 PM

    And trails??.....

  • by Tim McQueen 28/11/2011 2:13:10 PM

    They really need to come to the party on "trail payments from day one", too. NAB or HSL have a good product, but the process leaves a bit to be desired.

  • by Paul Gollan 28/11/2011 2:17:34 PM

    Thank you Jesus! Nice work NABBroker. Banks spend a lot of time asking brokers "what do we need to do to get more business". Clearly NABBroker has identified one of the answers. 65 basis points upfront plus their stepped trail structure is finally starting getting broker commission rates back to where they should be. Brokers and their families were smashed by banks during the GFC with banks citing margin squeeze. Notice net margin on mortgages has got very little airplay this year, while pricing committees at banks have been throwing around discounts like drunken sailors. RESPECT NAB!