Bank celebrates 7 years of broker success

by Rebecca Pike30 Nov 2018

A non-major bank has thanked brokers, in a week which marked seven years since it launched its broker channel.

Broker groups have been defending the industry over the last two weeks after comments in the latest round of the Royal Commission. Commonwealth Bank CEO Matt Comyn last week expressed his preference for brokers to be paid a fee for service instead of commission.

But now ME Bank has come out to celebrate its “seventh birthday” with the broker channel, the anniversary of a decision it says was important to the success of the bank.

In the letter from CEO Jamie McPhee, he said brokers accounted for 70% of the bank’s home loans.

He praised brokers for allowing ME to compete with larger banks and providing the ability for them to communicate with customers who would rather talk to brokers.

McPhee said, “Without brokers, ME could not fully realise its core purpose of helping Australians get ahead through home ownership.”

The letter then went on to acknowledge the difficult period the industry has faced, with first the Sedgewick review, the Productivity Commission and then the Royal Commission.

The letter adds, “With more than half of all Australians considering a mortgage broker for their home loan needs, the broking industry provides a valuable service to Australians, providing convenience, helping them navigate the complexities of the lending process, and by offering the most suitable products to meet customer needs.

“Brokers are also vital for maintaining choice and competition in the banking industry. As part of ME’s continued public advocacy for a healthy and competitive banking industry, we will continue to support mortgage brokers, through whatever change lies ahead.

“On behalf of our customers, thank you for your valued partnership over the last seven years and we look forward to many more years of success together.”