Non-major vows 2015 focus on third party channel

by Maya Breen02 Mar 2015
A non-major bank has posted strong results through its broker channel, and has vowed to continue to invest in intermediaries.

AMP Bank’s yearly results showed their operating profit was up 10% to $91 million and head of sales and marketing Glenn Gibson told Australian Broker the bank remained committed to brokers.

We are very dedicated to the third party channel,” he said.

“A very high percentage of our business comes through either the direct broker channel or via our advisor channel and we don’t see that changing anytime soon, to a point we are investing in the growth of our mortgage capacity through our advisor channel.”
Gibson said AMP will roll out new system enhancements soon that have been in the works a number of years.
“We’ve been listening to our brokers, we’ve taken their feedback on board and hopefully they’ll be very pleased with what we’re about to deliver.”

Gibson said a quarter of AMP's mortgages are now written by their advisor channel.
“Having a quarter of our business coming through our own sources is a fantastic result because it highlights that our planners and advisers are giving whole of life advice to our customers, not just simply looking at superannuation or insurances; they’re now looking at home loans and debt as well.”
Gibson said the recent interest rate drop has impacted fixed rates.
“It actually probably took fixed rates off the agenda,” Gibson said.

“At the end of last year in particular, we were starting to see an increase in the popularity of fixed rates, that people were starting to think that maybe it was a great time to lock in.”
But he said after the interest rate drop and the following commentary hinting at another one, customers are deciding that it may not be the best time to fix.
Gibson said AMP will continue to look at their prices and our products to see what is needed over the next few weeks, especially depending on what happens with potential further RBA cuts.