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Dodgy bank practices are damaging the industry: FBAA

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Australian Broker | 27 Jun 2016, 08:00 AM Agree 0
Pressure on bank staff to push “unsuitable” financial products on customers is hurting the integrity of the industry, the FBAA has warned
  • | 27 Jun 2016, 08:36 AM Agree 0
    I'm a CBA customer. Every time I've spoken to them in a branch or over the phone recently (approx 6 times) I have been offered life insurance.
  • Sarcon | 27 Jun 2016, 09:13 AM Agree 0
    I can only assume that Peter White has the sarcasm switch turned ON! Is he seriously suggesting that brokers do not also have a "sales culture"?

    With respect to home loans, the banks operate under the same standards and laws i.e. NCC that brokers do. Given the consistent and frequent prosecutions against brokers by ASIC, Rather than having a go at banks he would be better off ensuring that his membership are following the rules.
  • Biting The Hand | 27 Jun 2016, 10:10 AM Agree 0
    Seriously, it's time some senior people in this industry stopped to take a look at how they are handling themselves in the current environment.

    Since the ASIC Remuneration Review was announced the Mortgage Broking industry has done nothing but look to shift the attention elsewhere to anyone and everyone - except themselves. One minute it's emerging channels such as Mortgage Referrers or Online Tech Disruptors, and now the FBAA have the audacity to suggest that banks themselves are the problem. Last time I checked, Mortgage Brokers distribute bank products and rely on the support of the banks don't they? Imagine the response from senior bank people when they read this garbage.

    The industry can't have it both ways. On one hand the industry is happy sing like a canary and gloat about the 60% market share they deliver, but on the other hand they throw the toys out of the cot whenever someone suggests closer scrutiny of the industry is required, or whenever an emerging channel might have claims to offering an alternative fulfillment solution to clients. If the industry wants to fly the flag over claims of 60% market share, then perhaps have the guts to accept that maybe Brokers are part of the problem and rather than spend time laying blame elsewhere, take the lead on being part of the solution to better client outcomes.

    This article reads as though Brokers have never acted in their own interests with a client outcome. ASIC must be choking on their breakfast.

    Might have expected such comments from an inexperienced or misguided Broker - but to come form a senior industry head - leaves me scratching my head.Time for the industry to face scrutiny (and increased regulation) head on and grow up.
  • Peter S | 27 Jun 2016, 11:28 AM Agree 0
    Critics are missing the point that is being made by the FBAA i.e. bank staff are being "pressured to sell a customer on the idea of discussing a financial product" - I believe that action is illegal unless you have appropriate licence or ASIC approval.
  • True | 27 Jun 2016, 01:29 PM Agree 0
    Good point Peter - interesting to see many bankers patrolling your comments.
    I'm a broker of 10 years; still have my original 1st year clients; despite the fact I often tell them they cant afford another property, or get another loan etc., given I have no sales targets to reach - like I did when I worked in the bank.
    No sales targets is certainly an advantage in being able to retain existing clients, when they know they'll get an honest answer to any queries.
  • Aaron | 27 Jun 2016, 06:55 PM Agree 0
    Really? sounds like you know nothing about brokers
  • Aaron z | 27 Jun 2016, 07:05 PM Agree 0
    Yeah definitely a laugh reading those messages above from bankers! Obviously feeling the pressure they are. If there is anyone who can comment on the industry it is Peter White.
  • Broker68 | 27 Jun 2016, 08:10 PM Agree 0
    As a former bank employee (now broker) I remember one of my last performance assessments. One of the KPI' s was your cross-sell revenue. For the assessment period my result was 483% of target however my manager still rated me as 'needs improvement'. Every morning you had to commit to what you were going to sell that day. At 11am you had to check in with the manager to see how you were going, another check-in at 2pm then a 'debrief' at the end of day to assess what you sold. It was all a numbers game, didn't matter if the product was appropriate or not.
  • | 28 Jun 2016, 09:21 PM Agree 0
    Haha you sound like an ex-CBA employee.
    • Broker68 | 29 Jun 2016, 07:46 PM Agree 0
      Spot on
  • ex-banker SydBroker | 06 Jul 2016, 11:13 AM Agree 0
    Very well said! There are a lot more it has yet uncover the dirty tricks of the majors' staffs adopt. The Bank knows but never revealed of their ugliness side. Brokers are forced to disclose every piece of information received, documentation, record keeping, compliance, on-going CPD training, and so on but the Branches adopt a different approach that no broker will believe and may not aware of.
  • Spud | 21 Sep 2016, 11:27 PM Agree 0
    Yep thats right and to the person commenting on howcasic persecutes the brokers and not banks somehow suggesting we are the problem.... c'mon 1. Brokers are easy notches on the belt for ASIC, they leave the banks alone because the banks can afford to defend themselves. 2. I worked at a bank and sore more dodgey things then I can remembe, on the rare occassions clients took yhe bank to task the troops rallied sacked an underling, moved an area manager sideways and paid a settlement which included confidentiality clauses.... the didgey practises never make it to ASIC or the media for that matter
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