Majors to limit aggregation partners

by BN09 Dec 2008

Major banks will encourage consolidation in 2009 by limiting their relationships to top aggregators, Deloitte has predicted.

"I think you'll find banks will be looking to reaffirm that control over the channel by encouraging consolidation ... by trying to be selective about the groups that they work with," said James Hickey, a banking partner with Deloitte Actuaries and Consultants.

Hickey's comments followed the publication of the annual Deloitte Australian Mortgage Report, which showed the mortgage industry was showing resilience in adapting to the current volatile conditions.

Both BankWest and ING Direct announced they would limit their relationships to the country's largest aggregators earlier this year.

The Deloitte report predicted that 2009 would be "the year of the large bank" as continued funding challenges will force non-banks to ride out the storm.

"It's an opportunity for them to capture market share and certainly the distribution end of the value chain and we've already seen movement on that. So we do see 2009 being a year of opportunities for those larger banks that do have access to deposit funding, that do have scale, that do have the ability to get granular about their customer base.



  • by phil 10/12/2008 1:28:25 PM

    How about aggregators limiting the majors. Lets support those that support us. We must be the only stupid sales group that sells a direct competitors product. The larger their market share the lower or relevance

  • by Broker 10/12/2008 1:59:31 PM

    Yes with 90% market share , there is no doubt they will continue to screw brokers whilst continuing to say they fully support the broker market, until they have driven the majority of brokers out of business that is.....

  • by Leisa Reeves 10/12/2008 2:19:02 PM

    No wonder, given the fact they have cut our comm's, their market share increases, plus the rumours of more commison cuts....I think, non banks need our support, given most are paying the best comms, turnaround times and service...