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ISCOVER
Jessica Darnbrough
Westpac has significantly reduced its reliance on the third party distribution channel, new research has revealed.
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According to the latest JP Morgan Fujitsu Australian Mortgage Industry Report, The Westpac Group has cut its broker usage down from approximately 45 per cent at the beginning of 2011, to 30 per cent today.
In contrast, both ANZ and National Australia Bank have increased their reliance on the broker channel, with both lenders growing their broker usage to approximately 45 per cent.
CBA also slightly increased its broker usuage to approximately 37 per cent.
“During 2011, Westpac decided to focus on its proprietary distribution channels (with mixed results),” the report read.
“Meanwhile NAB has aggressively re-engaged with the broker channel to accelerate its loan book growth profile following the acquisition of the heritage CGF mortgage managers and aggregators.”
But Tony MacRae, Westpac general manager, mortgage broker distribution has dismissed the findings of the JP Morgan Fujitsu report. He told The Adviser this morning that Westpac remains committed to its third party mortgage broker distribution channel.
Mr MacRae was also at pains to point out that the data reflected all components of The Westpac Group - not just Westpac Bank.
"Brokers continue to be a key part of Westpac's overall strategy and they currently deliver up to 42 per cent of the mortgages that are written across the banks channels,” he said.
