The new tiered broker model to be introduced by a big four bank will be “quality-based” rather than “volume-based”.
Westpac has shed light on its new broker segmentation model, introduced along with its new commission changes based on the Combined Industry Forum’s (CIF) recommendations.
The bank has said that the new model, which has been renamed “Priority Broker Support”, will move from being “volume/dollar-based” to “quality-based”.
Westpac’s new model, effective 1 January 2019 across all banking brands under the Westpac Group, will be broken up into three tiers. The higher the tier, the more support and service (such as faster turnaround times and access to credit specialists) brokers will qualify for.
Brokers will begin in the “Accredited” tier, with the opportunity to move into the preferential “Gold” tier and “Platinum”* tiers.
The bank has said that to qualify for a higher level of support, brokers will be required to:
Westpac stated that the CAR relates to the rate in which brokers provide all the following information in a loan submission:
Westpac added: “To help make it easier to achieve the best customer outcomes by minimising errors on the applications [brokers] submit, [brokers will] be provided with detailed criteria related to the Customer Accuracy Rate (CAR).
“Support will also be available from our business development managers to assist you in improving quality over time.”
More specifically, to enter the second Gold tier, brokers must have a Customer Accuracy Rate of 85 per cent and submit between six and 11 loan applications to Westpac per half year.
To be eligible for the highest Platinum tier, brokers are required to have a Customer Accuracy Rate of 85 per cent and submit at least 12 loan applications to Westpac per half year.
The base Accredited tier applies to remaining brokers that do not meet the above requirements.
Westpac has added that there is no requirement for brokers to meet a dollar volume threshold.
The banking group has claimed that the new tiered system could help “ensure the primary focus is always on good customer outcomes”.
According to the bank, loan applications submitted by brokers in the Gold and Platinum tier would be assessed within 24 hours, with brokers in the Platinum tier also given access to credit specialists.
Westpac said that “standard turnaround times” apply for loans submitted by brokers in the Accredited tier.
Moreover, the big four bank has stated that when Priority Broker Support is introduced on 1 January 2019, a transition period will apply where brokers will retain their current tier for six months.
Westpac added that during the transition period, its BDMs would ensure [brokers are] familiar with the changes and would keep brokers updated on their current standing.
The big four bank added that when the transition period expires, brokers would continue to receive support from its BDMs to ensure brokers maintain or improve their current tier.
“If it’s looking like you may not maintain your current tier, our business development managers will provide you with support and an action plan to help you improve your quality.”
The new tier system will apply to Westpac, BankSA, Bank of Melbourne and St. George.
*Under the BankSA, Bank of Melbourne and St. George models, the Platinum tier will be known as 'Flame'.
Charbel Kadib is a journalist on the mortgages titles at Momentum Media.
Before joining the team in 2017, Charbel held roles with public relations agency Fifty Acres, and the Department of Communications and the Arts.
Charbel graduated from the University of Notre Dame Australia with a Bachelor of Arts (Politics & Journalism).
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