Lender offers brokers an olive branch and says it's time to move on

by Mackenzie McCarty11 Apr 2013

BOQ has announced the expansion of its distribution footprint through the acquisition of Virgin Money (Australia) Pty Ltd (VMA), which the lender says is a reinforcement of its intention to re-enter the broker market.

The acquisition delivers BOQ exclusive Australian rights to the Virgin Money. Initially, the licence from the Virgin Group will be for retail financial services for consumers and SMEs, with provisions to expand into corporate financial services.

However, broker scepticism around the lender has remained heavy since BOQ pulled out of the market during the GFC – but BOQ spokesperson, Jamin Smith, tells Australian Broker it’s time to move on.

“We understand that some brokers may have this view.  The reality is that the global financial crisis challenged the regional bank sector, particularly in relation to their ability to access affordable funding, and some very difficult strategic decisions had to be made – we find that most market participants appreciate this.” 

Furthermore, Smith says BOQ’s current management team is committed to providing customer choice and notes that the mortgage broker market is an important part of this. 

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  • by Shane in QLD 11/04/2013 11:15:29 AM

    Rubbish. BOQ abandoned the broker market in 2004, which was years before the GFC, as their then CEO stated they do not need brokers, only their branches. To claim the GFC as the reason BOQ left the market is simply untrue and false.

  • by M Nasr 11/04/2013 11:18:56 AM

    For the records BOQ pull out of the Broker Market around 2004 - 2005 way before the GFC. They wanted to open up franchise branches and did not want brokers to compete with them.

  • by Rach 11/04/2013 11:20:19 AM

    And again...I'll believe it when I see it and judge them on their offering...