"Coming from this environment I know how these guys think, and with this new structure there's no way in hell a branch guy is going to let a deal go when he sees the broker has them on a 0.05% discount and he can give them a 0.07% discount," he said. "They've got their buckets to fill, which are way beyond their task. They have to fight to get the gates open for business, and they have to do this kind of stuff.
If this call happens any time before settlement, there's nothing to hold the branch guy off from smashing the broker out of the deal. To me it's a no-brainer, and I can see that this is not going to end well," Saldanha added.
But Kirkpatrick said that branch staff contacting clients would not be home loan officers, and would only address products and services not already covered by the broker. He stressed that any strategy involving stripping away brokers' customers would be counter-productive, and end up hurting the bank in the long run.
“To be honest, it would be foolish to cut our nose off on this because brokers bring in around 50% of bank customers. Why would we cut that off?”