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The Commonwealth Bank has confirmed the way it pays commissions to brokers is set to undergo wholesale changes in the second half of 2014.
Lyn Cobley, CBA’s executive general manager of retail products and third-party banking, revealed to The Adviser that brokers would be able to choose how and when they were paid, although the exact details of the new structure were yet to be finalised.
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“We are investing a considerable sum of money into our commission structures,” Ms Cobley said, “and that will allow us to be able to provide much more flexible commission structures to brokers, some of whom would like to be paid more up front, less up front or more in a trail.
“I think when we can finalise the announcement it will be very, very attractive to brokers and it will enable us to be much more granular in the offerings we can make to brokers in regards to our commissions.”
Meanwhile, Ms Cobley extolled the bank's new online accreditation system that enables brokers to be accredited with Australia’s largest lender in a mere 48 hours.
The new accreditation process was in the form of an online exam and could reduce processing times by as much as one month.
“If you sit an online exam, and you pass that exam, you can be accredited to the CBA, to provide loans for us, within 48 hours,” she said.
“That process used to be 30 days and we consider that to be a great improvement in efficiency and productivity and we encourage brokers who aren’t already accredited to go through with the process.”
Ms Cobley told The Adviser that the initiatives were an acknowledgement of the third-party channel, which, she forecast, would soon contribute 50 per cent of the bank’s home loans.
“The broker channel remains very important to CBA and with these new initiatives, plus our compelling technology, our innovation, our focus on efficiencies, our security at the balance sheet and our commitment through the good and the bad – as most brokers would know through the GFC – just highlight our commitment to the broker channel.”
