ANZ commits to broker channel

In an end-of-year update, Ms Tilley said: “As a collective, aggregators, banks and brokers, we have all been equally tested this year.

“One thing that has stood out is the way everyone has come together during a challenging year to drive a higher level of professionalism across the broker industry for our customers.”

The head of broker distribution said that the bank “appreciate[s] that [brokers] all have choice”, adding that it does not “underestimate the impact our consistency and transparency plays in managing your customers’ expectations”.

However, Ms Tilley conceded that the bank had work to do moving forward.

She said: “We recognise that we need to do a better job of communicating openly, especially when we do not execute as seamlessly as we would like to. This is front of mind for our extended team, particularly as we deliver new technology or initiatives to market.”

Adding that ANZ has been part of the broker industry for over 20 years “and over time, have been famous for consistency, and delivered on that promise,” she added: “We intend to maintain that commitment in the future.

“We are proud of the relationships we have built over time and understand we need to continue to work hard to maintain them.”

Ms Tilley concluded: “Our business model is based on working together to generate positive outcomes for home lending customers, and we could not do deliver what we do without your support…

“Thank you for all that you do for Australian customers.”

The big four bank recently noted its dependence on the broker channel during the financial services royal commission.

Giving evidence to the financial services royal commission in its seventh and final round of public hearings last month, ANZ CEO Shayne Elliott noted that less than a third of its home loans originate through a branch.

“[Fifty-five] per cent come through brokers and another roughly 15 per cent come through our mobile banking network,” he said.

The ANZ CEO added: “So, the branch network is not a terribly efficient or well-used avenue for home loans.”

Mr Elliott’s comments are in line with findings from Morgan Stanley Research’s Roadmap to Branchtopia report, released in October, which found that mortgage sales through ANZ’s branch network were the least efficient of the big four banks, with $35 million in home loans settled per branch in the 2017 financial year.

According to Morgan Stanley, ANZ “relied more on mortgage brokers” relative to other major banks, with broker-originated loans making up 51 per cent of its home loan flows in 2H17.

[Related: ANZ CEO laments complex ‘408-step’ mortgage process]