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Aggregator to banks: Time to share the wealth

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Australian Broker | 03 May 2012, 06:00 AM Agree 0
One of the market's largest aggregators has said that major bank rate cuts should be 'meaningful' or risk a continued market stagnation
  • Barney | 03 May 2012, 10:30 AM Agree 0
    What about taking some of their excess margin and giving us our 0.25% trail back!!
    Good brokers could re invest in their business with better remunerations and pay for better training and systems as well as growing their business with more staff and undertaking new marketing initiatives. Pretty hard to do that these days when some lenders are paying zero in year 1 (CBA) and others hover around 0.15% still!
    "Share the Wealth" - I agree. They would get more volume if they were less frugal.
  • Barney | 03 May 2012, 10:41 AM Agree 0
    With the excess margin the banks are earning and their multi billion dollar profits - how about they give brokers back their trail commissions at 0.25%. We were compressed by the GFC yet there has been no movement in getting our margins back!
    WHy arent aggregators getting together (or the completely useless MFAA) and lobbying harder for the broking industry?
    With a greater share of income you will attract more highly qualified brokers. Brokers will also be able to re invest more into their businesses in systems and processes, compliance, marketing and staff. Which - in turn - will create greater volumes. Its much harder to expand a business when commissions are still 40% down on the pre GFC amounts.
    Short term thinking on the Banks behalf! All of these massive client pricing discounts just causes the Banks to fight over the same (few) clients. Offer a smaller discounts - pay the brokers more - and watch the industry grow and the volumes will follow.
    "Share the Wealth" - I agree - give us our trails back.
  • Ripped off broker | 03 May 2012, 11:00 AM Agree 0
    I'm with you Barney.
  • BrokerIQ | 03 May 2012, 11:37 AM Agree 0
    Probably because 90% of brokers are not as savvy as you Barney. In my opinion the extra commission paid out wouldn't be re-invested back into their business or into developing their own skills, or that of their staff. One reason the banks felt justified in redicuing trail payments was a high number of brokers paying Real Estate agents for referrals. And therefore, agents came to expect that of all brokers. The banks came to a conclusion that brokers are earning plenty. Think outside the square people! Many brokers are their own worst enemies and the lack of commercial acumen continues to be problematic. Aggregators offer good platforms to enable brokers to market, manage and build their business. And do you think many of them embrace these services? Paying brokers more do be stronger business people wont change a thing.
  • Rob | 03 May 2012, 12:41 PM Agree 0
    Barney is right on the money.The banks are trying to claw thei margins back by not passing on the full rate cut--why aren't our representatives ( MFAA and aggregators ) trying to claw back the brokers margins? Don't they supposedly work for us? What are we paying them for?
  • Scott Hawkanson | 03 May 2012, 12:50 PM Agree 0
    Broker IQ - are we really to believe that the bank's adjusted trail payments because some brokers were paying referral fees and hence made the assumption that "brokers are earning plenty". Seems like a pretty tenuous link to make.
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