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BankWest cuts 42 broker groups

Staff Reporter 2 minute read

BankWest will reduce its distribution to just 17 brokerages and will break ties with all other groups within 28 days.

Mark Reid, head of retail sales with BankWest, told Mortgage Business that the move was part of a strategy to improve distribution efficiencies and third-party relationships.

“There are only limited resources available in the current market so we wanted to make sure we are able to provide our loyal partners with the resources they require,” he said.

“We really just wanted to say thanks to those groups who have stuck by us, and ultimately, reward their loyalty.”

Mr Reid said the cut was not about loan volumes, as had been rumoured, but relationships and the frequency of transactions.

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The move looks certain to add pressure to an aggregation industry already facing consolidation.

Smaller groups without access to major lenders could find themselves disadvantaged either by access to products or less generous commissions structures as those offered to the major aggregators.

As other lenders announced restructured broker commissions, BankWest last month said it would freeze current levels with FAST, Choice Aggregation Services, PLAN Australia, AFG, Mortgage Choice and Aussie – its top six volume groups.

When asked whether the bank would consider offering products through other groups down the track, Mr Reid said “probably not”.

“The groups were selected because of the strong relationships we hold with them,” he said.

Published: 26-05-08

BankWest cuts 42 broker groups
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