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Staff Reporter
Westpac’s general manager mortgage broker distribution Tony MacRae has dismissed claims that the broker segmentation model has no relevance.
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Earlier this week, NAB Broker’s general manager distribution John Flavell said the broker segmentation models implemented by other lenders were flawed.
“When we removed our segmentation, we received a lot of feedback. We talked specifically to brokers that are on the VIP programs for some of our competitor lenders, and they told us that after the wining and dining was done, from a service perspective, these lenders were not offering anything that Homeside didn't offer to all of its broker partners," he said.
But Mr MacRae disagrees and said segmentation remains incredibly valid in today’s environment as it helps the lender recognise and reward its top performing broker partners.
“Westpac believes it is important to develop true long term partnerships with mortgage brokers. Our mortgage broker segmentation involves recognising those brokers that have supported us for a long period. This is simply about value for value, and we are keenly aware that high performing brokers in the industry want to be recognised for their contribution to their lender partner’s ongoing success,” he said.
“ What also works alongside this approach is the continual improvement of our overall end-to-end mortgage broker value proposition to our broker partners which cover service, products, pricing, strong relationships with our local retail network and access to a high quality BDM.”
Mr MacRae said while “some” stakeholders believe there are drawbacks or missed opportunities in deploying a segment plan, segmentation improves a lenders’ mortgage broker value chain proposition.
“If you listen intently to both your top tier and all your broker partners, you will come to realise their key priority needs and what drives them, then execute to deliver on these. There is great benefit in recognising the most ardent customers, and as strong businesses themselves, mortgage brokers across the board understand this approach which helps them to build strong, sustainable and trusted partnerships with all their clients and lender partners,” he said.
