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The subsidiary’s shift towards full digitisation is good news for brokers, the FBAA and MFAA have said.
Heads of the Finance Brokers Association of Australasia (FBAA) and the Mortgage and Finance Association of Australia (MFAA) have highlighted the benefits for brokers in Bankwest’s recent move towards full digitisation.
Bankwest announced this week (6 March) that it will be prioritising investment into the broker channel as it closes its branches to become a fully digital bank this year.
At the time of writing, approximately 90 per cent of Bankwest’s home loans are originated through the broker channel.
Speaking to The Adviser, managing director of the FBAA, Peter White AM, approved of the move, stating that Bankwest has “always been very supportive with their distribution capabilities through brokers”.
“This [move towards digitisation] does elevate that,” White said.
“I think this is a good thing for brokers, [but] I think we’ve just got to watch if that means CBA is going to move away from brokers?
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“You’ve got one arm that’s very focused on the broker marketplace, does that mean the other one’s going to be ambivalent to it? Time will tell.”
MFAA chief executive Anja Pannek told The Adviser: “Bankwest’s announcement they are becoming a digital bank highlights this continuing trend of banks reducing reliance on their own retail networks and the importance of investment in the broker channel.
“The reality is core banking services are being digitised and banks are closing their branches, this isn’t going to stop.
“With this outlook brokers are stepping in to provide support and assistance to their clients in a very personal way – meeting with their clients face to face in their homes, offices, or at their businesses.”
Pannek recalled her appearance before the Senate inquiry into regional branch closures last year to reiterate how investment in the broker channel is key due to a growing reliance on brokers from the banks.
“In their announcement Bankwest have acknowledged that brokers fill the void when branches close and noted their commitment to working with brokers who distribute their products including investment in broker systems and processes which is welcomed,” Pannek added.
“Brokers are the channel of choice for Australians, and we would like to see ongoing investment in the channel from all lenders.”
White continued: “With Bankwest basically shutting down all branches, this will up business opportunity from the brokers’ point of view, so long as they use their powers for good and not for evil.”
White explained that brokers will benefit from the move so long as they do not use the digital platform to “try and undermine brokers”.
[RELATED: Bankwest announces major transformation, focus on brokers]
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