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Westpac denies third party exit

by Staff Reporter8 minute read

Westpac has hit back at media claims that it is on the verge of pulling out of the broker channel.

According to a report in Banking Day, Westpac has decided it wants to “call it quits” with the broking channel.

The online daily publication cited Westpac’s chief executive Gail Kelly as saying the group would adopt a strategy of shifting loan origination away from brokers to proprietary channels.

The article went on to say that this change in distribution would give the bank a better “margin on its mortgages and provide greater opportunities to cross-sell to the customer”.


However, Westpac’s Huw Bough General Manager Mortgage Broker Distribution told The Adviser that there was no substance in the media report.

“We categorically deny these claims.

"The level of mortgage enquiries flowing through the third party distribution channel will change from time to time. This is not unique to Westpac. This happens with all lenders,” Mr Bough said.

“At the end of the day, we remain 100 per cent committed to customers and customers choose to deal with mortgage brokers.

"So, in this vein, we will always be 100 per cent committed to supporting the broker channel.”

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