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Bank confirms return to broker channel

by James Mitchell4 minute read

One of the world’s largest banking groups has confirmed that it will return to the third-party channel and recommence working with Australian mortgage brokers.

HSBC Australia yesterday confirmed that it is currently in the process of gearing up for a return to the broker market and has started recruiting for a number of key roles to service the channel, which now originates the majority of home loans in Australia.

The confirmation comes after The Adviser requested information from HSBC about a series of job advertisements posted on LinkedIn over the last week. The bank is currently looking to fill the positions of mortgage broker relationship manager and mortgage broker support officer.

“We are currently inviting qualified individuals to join the newly created mortgage broker team as a third-party relationship manager,” the job description states.

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“Reporting to the broker care team manager this role is client facing managing a portfolio of broker initiated clients where professionalism, client focus and a sound understanding of the fundamentals of financial planning are critical to the success of the business.”

An HSBC spokesperson confirmed the bank’s third-party plans, which are still being finalised, and said more information on the launch will be announced over the coming weeks.

The foreign-owned bank left the third-party channel a decade ago after selling its broker-originated loan book to Firstmac in 2006, which at the time consisted of over 10,000 customer accounts worth $2.26 billion.

The bank’s current mortgage book is valued at just over $10 billion, larger than Citi ($7.2 billion) but significantly less than ING DIRECT ($39.3 billion).

In the UK, where HSBC is headquartered, the bank was notorious for avoiding brokers until its decision in late 2014 to begin distributing through Countrywide. The bank has since partnered with a handful of major UK brokerages.

In Australia, HSBC has been coy about its third-party plans despite widespread industry speculation of a possible return.

More to come.

[Related: HSBC mulls third-party plans]

hsbc story

James Mitchell

James Mitchell

AUTHOR

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

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