Australian Broker forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Banks must stop branch managers from poaching broker business: White

Notify me of new replies via email
Australian Broker | 09 Sep 2014, 08:17 AM Agree 0
An industry leader has praised the recent move by banks to increase broker commissions, but says that banks need to stop branch managers from taking business away from brokers if they really want to support the third party channel
  • King Clive from Canberra | 09 Sep 2014, 09:29 AM Agree 0
    The banks are always asking for opportunities to "Bank "our asset finance clients with the false promise that the clients are the brokers and they will respect the relationship.
    They rarely do and are hopeless at dealing with the customers.

    Brokers don't let these bankers near your customers under any circumstances.
    You are their banker .
  • Lyle_NSW | 09 Sep 2014, 09:40 AM Agree 0
    Well said Peter White. One of the major 4 is the absolute worst at it. It feels like they are "white anting" us brokers all the time. When caught all they say is "Oh its just an individual branch manager". Hogwash. When you challenge the branch manager they say its coming from head office.
  • Country Broker | 09 Sep 2014, 10:03 AM Agree 0
    Agree and its not only manager its in house home loan consultants who are on commissions and do not hesitate to knock off a broker client . Any of the big four are doing this .

    I had a CBA staff member tell mu client " it will still be with the broker: and then promptly rewrote the deal and advanced another 30 K .
    I fought to have the claw back reversed , after I received a letter of complaint from my client
  • Virendra Anand | 09 Sep 2014, 10:10 AM Agree 0
    It happens all the time. We look after the client for years, the client walks into the branch for unrelated business, He's gone.

    The branch staff will tempt them for a better deal r a product t simply lure them aware.
  • observer | 09 Sep 2014, 10:14 AM Agree 0
    Our office has lost several clients over the last few months to bank branches undermining the deal we have arranged for them. It is usually done when the client is forced to go to the branch to complete their identification. When they identify as a broker customer, it seems like its "game on" for the branch. We also got the excuse that it was an individual branch manager not a bank culture thing. That bank doesn't get any of our deals now (subject to having the clients best interests at heart of course) and our office (2 brokers) wrote $60m last year. We realise that we are small fish in the scheme of things, but hope that no more of our clients will be NABbed in this way again.
  • Broker | 09 Sep 2014, 10:24 AM Agree 0
    What commission increases?
  • Really? | 09 Sep 2014, 11:42 AM Agree 0
    Observer, if you have lost several clients, why do you continue to use them? Surely there are other alternatives to the majors? I'm sick of reading 'the bank stole my client' and 'the majors do this and that'. There are alternatives. Everyone knows what the big players do, send them business knowing and accpeting what is likely to happen and don't whinge. If you want to change things then change things....
  • Neil on the warpath | 09 Sep 2014, 12:07 PM Agree 0
    I am sick and tired of one major in particular (logo looks like a piece of burnt toast) poaching my clients. When they are caught out they insist the client cannot be re-assigned back to me as the initiating broker. So, my mission is to take as much business as I can from that bank. And I send a regular email to my bank BDM to let them know how much business I have taken from them. Plus I give them no business. No postcode restrictions or not.
  • Clarke Kent | 09 Sep 2014, 02:04 PM Agree 0
    Its been going on for years and referred to as "Channel Conflict"

    In reality Bank employees don't get off their backsides and knock on doors prefer the comfort zone of an air-conditioned office so at every opportunity they will look to poach a client.

    I had an incident recently where client went to lodge a Visa Card application at branch, was told they had to meet the Mortgage specialist, who then used that as an opening to rewrite their broker introduced mortgages!
  • Support those that support you | 09 Sep 2014, 03:19 PM Agree 0
    If a bank poaches your client then let them know and don't recommend them any more.

    With all the options we have available they bank needs you more than you need them.

    There is one major bank that I have not sent an application to in over 6 years.
  • SEQ BRoker | 09 Sep 2014, 03:22 PM Agree 0
    Yep. Happened to me recently. Branch manager re-wrote a deal because at the time we couldn't get the value of a swimming pool into a valuation. Branch manager financed the pool into the deal. Valuation of course worked. My BDM has since reversed the loan back to me for trail purposes and an argument is still going on about the claw. I gotta tell you though, my client knew nothing of the consequences and were not at all advised. Worse I know this branch manager so I cant imagine what sort of pressure he is under.
  • Bottom Line | 09 Sep 2014, 04:24 PM Agree 0
    Must admit, I haven't experienced it - which I'm grateful for.
  • Poor show | 10 Sep 2014, 09:23 AM Agree 0
    2 occasions - land loan approved- sent to branch for offset account....the pressured client to write the construction (we were waiting of 2014 tax and final building estimate) ...lucky we warned client before hand. When we advised BDM - they said it doesn't happen. 2nd - client went to bank (another major) to establish account prior to loan submission (BDM advice for improved credit score) ...30 minutes of pressure to write the loan then ...when advised BDM they said fair game/play as the loan hadn't been submitted yet !!! In both cases we were using these banks due to particular lending policy required for clients position.

    Generally, we'll use any funder that offers good policy, service, products, rates etc. and am loath to avoid/ignore a particular brand based on my bias as this could be considered conflict of interest ....or is that just me ?

    Just after a fair paying field and to be appreciated for the business we bring - not have my clients and income stolen from me !
  • Ed Ridge | 10 Sep 2014, 10:07 AM Agree 0
    So how many of you approached your aggregator to assist? Mmmm that's what I thought, you all did but you are still waiting to hear back. You can't stop this no matter how much to the contrary the 3rd party management within the banks will tell you. Branches have quota's to meet and get paid commission (ooohhh sorry bonuses) for selling a home loan. Where we excel is we don't sell products we build relationships and that is the banks Achilles heel. Use it and expose it. When you client goes into a branch explain the difference between a genuine bank employee and one who is looking after themselves your client will make their decision from there. If they choose the employee who is in it for themselves then you probably never wanted that client anyway. Great to see Peter coming out in relation to this topic but bottom line nothing is going to happen. For all those brokers that stopped using those banks (and we did too) keep up the great work this is the only way we can control one aspect of our businesses. Good luck everyone, keep detailed notes and start sending them to your aggregator asking for will find out who your business partners really are.
  • king clive | 10 Sep 2014, 01:09 PM Agree 0
Post a reply