Bankwest goes digital

Bankwest has announced that it is moving towards becoming a fully digital bank in 2024 and will be prioritising investment in the broker channel.

Currently, around 90 per cent of Bankwest’s home loans are originated through the broker channel and 97 per cent of transactions by Bankwest customers are serviced digitally, with fewer than 2 per cent of its customers visiting a branch regularly.

As such, the bank will be closing its remaining 45 branches in Western Australia, with 15 regional branches converting to the Commonwealth Bank of Australia (CBA) expected by year’s end.

Ian Rakhit, Bankwest’s general manager, third party, said: “Brokers are so important to Bankwest and the decision to pivot the business to free up increased investment to enhance its broker offering is a reflection of that importance.

He told The Adviser: “I was around when we closed a lot of our branches in 2018, and the money there was invested to deliver our broker portal that continues to earn rave reviews because of the ease in which brokers can access information on their customers.

“In 2022, the money from more branch closures was invested into DocBox, which allows brokers to place customer documents directly onto the file for an assessor or credit manager to action immediately. “Like we saw then, what we’ll see now is a redirection of investment into broker tools and broker services.”

Association heads Anja Pannek (MFAA) and Peter White AM (FBAA) have largely highlighted the potential benefits this could have for brokers.

Class action filed against Aussie Home Loans

Law firm Shine Lawyers has filed a class action lawsuit in the Federal Court against major brokerage Aussie Home Loans on behalf of “up to 30,000 Aussie Home Loan mortgage holders” over insurance policies.

The insurance policies in question – Mortgage Protection Plan or My Mortgage Plan – were alleged to have “little to no value” and that home owners were misled into purchasing the product, according to the law firm.

Kione Johnson, Shine Lawyers’ class actions practice leader, stated the claim will allege that mortgage holders were “sold a junk policy”.

“The policy promised mortgage holders assistance for home loan repayments in the event of illness or injury, loss of employment or death,” Johnson added.

In a statement issued to The Adviser, an Aussie Home Loans spokesperson stated: “We are aware of a class action involving aspects of an insurance product, although we do not issue insurance ourselves.”

Additionally, ALI Group (the provider of these insurance policies) stated it will “vigorously defend” against the lawsuit commenced by the firm.

“The legal action makes allegations about selling practices and product design for an unspecified class of claimant,” the group stated.

Brokerage hit with penalty for underpaying staff

The Fair Work Ombudsman penalised Melbourne-based mortgage broking business Ansa Finance $99,900 for its failure to take the steps to back-pay its workers.

The Federal Circuit and Family Court imposed penalties in two separate decisions totalling $83,250 against Ansa Financial, along with penalties totalling $16,650 against its manager Joshua Fuoco.

Allegedly, Fuoco was involved in contraventions with regard to the business failing to comply with compliance notices that required the back payment of five workers and failing to issue pay slips to one of the workers.

Additionally, the court has ordered Ansa Finance to comply with the compliance notices in both cases. This includes rectifying any underpayments in full, plus interest and superannuation.

Ansa Finance’s workers were reportedly underpaid an estimated total of more than $17,000. The brokerage employed workers as finance brokers through several periods between February 2020 and November 2021.

Opposition announces new shadow assistant minister for home ownership

Liberal Party Leader Peter Dutton has named senator Andrew Bragg as the new shadow assistant minister for home ownership.

Speaking of the appointment, Dutton said: “Andrew’s astute policy mind and advocacy will stand him in good stead for this critical portfolio area for the Coalition under my leadership.

Dutton further announced Luke Howarth MP has become his new shadow treasurer and shadow minister for financial services.