The country’s largest mortgage provider has revealed that a key focus for its growth will now be via the proprietary channels.
CBA detailed its growth strategy at a question and answer session following the release of the bank’s half-yearly results this week.
“Brokers will always be an important part of our business, but we are focusing primarily on our proprietary channel,” CBA group executive of retail banking services Matt Comyn told analysts.
Yesterday, The Adviser reported that according to CBA’s half-yearly results, the bank recorded a drop in mortgage growth, particularly in the broker channel and investor segment.
While CBA home loans grew at 6.4 per cent over the six months to 31 December 2014, this was below system growth of 6.8 per cent.
“We lost about 10 basis [points] of market share in that period down to 25.1 per cent,” CBA chief executive Ian Narev explained.
“That is largely because we are underweight in some of the higher growth segments, particularly in broker and investment lending,” he said.
While CBA declined to respond to Mr Comyn’s comments, a spokesperson did emphasise that the bank continued to invest in the broker channel.
Recent developments include the introduction of first-year trail, which became effective 1 January 2015, the introduction of a fast track approval process for all brokers and the addition of three relationship managers and five broker direct staff to provide support, coaching and busienss development for brokers and their teams.
[Related: CBA reduces rates to record low]