By: Staff Reporter
ANZ has been quick to dismiss recent media reports indicating that it is considering cutting broker commissions.
A bank representative spoke to The Adviser in response to an article published in The Australian yesterday, which quoted ANZ’s chief executive Phil Chronican saying banks were already beginning to make changes to mortgage packages, particularly reducing brokerage fees, to ease the current margin squeeze.
According to the spokesperson, Mr Chronican’s comments were taken out of context, referring to May 2008, when all of the majors reduced broker commissions.
ANZ has reiterated its commitment to the broker channel stressing that it would engage the broker channel before making any changes to commissions, however the bank did stop short of giving The Adviser a concrete guarantee that it would not change broker commissions within the next 12 months.
The spokesperson for ANZ said the bank was constantly reviewing the economics of the mortgage broking industry, especially following the impact of the global financial crisis.
“If we were to propose any changes to broker commissions in the future we would talk directly to brokers and not go through the media,” the spokesperson said in reference to the report in The Australian.
ANZ has gained significant ground via the broker channel over the last 12 months. The bank was only narrowly beaten by CBA as the preferred lender in The Adviser’s Third Party Banking Report - Major Lenders.
Connective principal Murray Lees told The Adviser that the industry was unlikely to see any of the majors cut commissions, as current commission levels are easily sustainable for the longer term.
“The banks understand that consumers want to deal with brokers. So I doubt they would do anything to jeopardise that relationship,” Mr Lees said.