Bank launches new product

Speaking to The Adviser, AMP’s head of sales and marketing Stephen Craig said the broker deposit program, which has been in the pipeline for the last few years, would help strengthen the broker proposition.

“I believe the deposit program, where brokers can arrange basic deposit products for their clients, is a natural add-on for brokers.  Some brokers deal with clients who are thinking of buying their first home but still need to save a deposit – this is where the arranging the transaction account comes into its own,” he said.

Similarly, many clients will already have an AMP Bank home loan, possibly with offset deposit accounts attached, that they look to pay out and close when they sell their home.

But instead of collapsing the entire home loan structure and depositing the money from the sale of the home into another bank branch savings account, Mr Craig said a broker can, subject to approval, substitute the security property with an AMP Bank term deposit to place the money in for the time being, allowing the client to keep their home loan structures in place until the next time they buy.

“This program really comes in handy for brokers who want to form deep strong relationships with their clients. At the end of the day, brokers should be asking enough questions to know whether or not their clients hold, or require, a deposit account. If a broker doesn't arrange the deposit accounts for their clients, the client may need to look elsewhere - and this could typically be a competitor,” he said.

According to Mr Craig, AMP Bank pays trailing commission on basic deposit products – providing brokers with well-earned additional revenue.

“We refined the program over the last couple of years, but we feel we finally have it right and are excited to be going to the market with it.”

The lender is currently in the process of rolling out the program to the various aggregation groups – accrediting them and their brokers to arrange the products.