A major bank’s decision to reintroduce trail in year one is about recognising mortgage brokers’ importance in the market, the bank’s third party head has said.
yesterday announced it would begin paying 15bps of trail in year one for all loans settled after 1 October. The bank’s general manager of broker distribution, Steve Kane
, said the decision showed NAB’s recognition of the importance of the channel.
“It really is recognising that as part of the overall NAB strategy and our business strategy going forward, we recognise that 50% of the Australian marketplace seeking a home loan are going through the third party to get it. We need to make sure for our own business and the benefit of our customers that we’re playing a significant role in that channel. This is about the longevity of the channel, it’s about support for the channel and it’s about making sure that we are well aware of the professionalism of the channel,” he said.
Kane said the bank was looking to deliver “fair value” for the work brokers do, which he said has increased substantially with the advent of the NCCP.
“The legislation is asking brokers to do much more, and we’re asking them to do much more in terms of managing the customer relationship. This is a recognition of that value,” he said.