Login
ISCOVER
Banks need to end channel conflict if they want to gain more business from brokers, according to the FBAA.
Chief executive officer Peter White said while the increase in broker commissions has been a positive trend, banks could also win more business by respecting the third-party channel.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
“We’ve had a number of members telling us that bank branch managers have intentionally tried to influence their clients to switch to bank products directly, bypassing the broker who introduced the client to the bank in the first place,” he said.
Mr White said that branch managers should refer third-party clients back to the broker rather than try to poach them.
“If the banks truly believe what the surveys are saying – that brokers are more regarded by consumers than banks – and they want to increase broker business, then they must educate their branch managers to support our clients,” he said.
The relationship between lenders and brokers must be a “two-way street” that involves good faith from both parties, Mr White said.
He added that brokers don’t expect special treatment, but just want a level playing field.
[Related: FBAA calls for clawback study]
