NAB’s decision to increase its commissions and rebrand Homeside has reinforced its rise from last to first in the major bank rankings.
The bank announced on Tuesday that it would reintroduce first-year trail from October 1 and also rebrand Homeside as NAB from August 18.
NAB placed last in the inaugural Third Party Banking Report in 2010, after failing to meet broker expectations on BDM support, turnaround times and remuneration.
It then climbed to third spot in 2011 after winning two of 17 categories, before placing first in 2012 and 2013, and again in 2014.
Brokers this year chose NAB as the winner in 12 of 23 categories, including product offering, price and commissions.
General manager of broker distribution Steve Kane said NAB’s decision to reintroduce first-year trail had been influenced by feedback from brokers.
“We recognise the value that is being created by the brokers as they introduce customers, many of whom are new-to-bank customers, and we recognise that there are costs involved,” he said.
“We’re asking brokers to do much more … in managing the relationship with the customer on an ongoing basis, and this is a recognition of that value we’re trying to bring back to make sure that the industry remains viable and robust, so that everyone benefits, including the end customer.”
Mr Kane said NAB recognised that brokers were gaining an increasing share of the mortgage market and that the third-party channel was here to stay.
He also said the decision to rebrand the Homeside business would make life simpler for brokers and borrowers.
“Clearly for us, the NAB brand is an iconic brand in the marketplace. It’s an absolute household brand, and everyone understands the strength and the value that sits behind that brand, so it’s very important that we leverage off that,” he said.