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As Australia's brokers prepare for the introduction of licensing, so too are the banks. Licensing will ensure passionate brokers remain in the industry, while part-timers move on.
Mark Reid
Bankwest
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The mortgage broking landscape is changing, and the lenders are strongly backing the changes.
In the past few months, we have seen banks tighten their commission structures to favour brokers who write quality business.
In September, St George announced its plans to overhaul its upfront commission structure in a bid to reward the bank's elite brokers.
And St George isn't the only bank supporting quality operators.
Bankwest is currently implementing a series of changes that will ultimately reward our elite business writers.
We are in the throes of creating a tiered broking structure for business banking.
Our top business writers will fit into our Platinum club. In determining which brokers will be admitted to the Platinum group, we will look for those who write a consistent amount of business that is of the highest quality.
We want to reward our quality brokers with faster turnaround times, better service and broker care.
Many of the banks already rank their residential brokers into varying tiers. However,
no-one has introduced a tiered structure among their business brokers.
We aim to be the first.
As we have seen with other lenders, segmentation allows a bank to provide quality service to its quality operators.
In addition, segmentation is a great way to encourage brokers to go that extra mile and submit better quality loans in order to achieve better service from their lender.
When this approach is formally launched, as it currently stands, I expect there will be approximately 100 business brokers that will qualify into our Platinum Club.
While that doesn't sound like very many - given the industry boasts more than 12,000 mortgage brokers - our research shows that those 100 brokers currently write 80 per cent of our business.
Bankwest receives commercial loans from approximately 1,000 brokers on an ongoing basis.
By doing this, we guarantee absolute first class service to our elite brokers at all times.
That said, we will also continue to work with brokers who use Bankwest on an ‘ad hoc' basis.
Ultimately, our aim is not to segregate brokers, but rather to build the business broking space.
Bankwest is committed to the business broking channel - and I, personally, am committed to this channel.
While introducing the tiered structure is next on the agenda, we are also currently working on a number of initiatives that will support the business broking distribution network.
We are actively listening to our brokers and then acting on this feedback.
Given the wealth of valuable feedback received, we've made several significant changes to how we conduct and manage the broker experience within both the business and commercial channels.
The most noteworthy is a commitment to ensure the client's relationship with their broker is maintained.
In future, when a client introduced by a broker calls the Bankwest Call Centre regarding further lending, Bankwest will always refer them back to their broker.
This is an industry first and further highlights our commitment to working in full support of the broker channel.
In addition, brokers and their clients can now look forward to Dedicated Partnership Managers who will support brokers in placing deals at Bankwest.
The industry is changing.
After licensing I expect a majority of cowboy or part-time brokers to exit the industry, leaving the sector with quality operators who are passionate about their career.
Just like other lenders, we are looking to support these quality professionals with quality service.
