Broker market needs to segment itself
Thursday, 30 July 2009
The broker market needs to segment itself so that it separates the professional operators from the rest, according to Kathy Cummings, executive general manager, for third party banking at the CBA.
Cummings said that over the last 12 months, the broker market had - bar a few exceptions - failed to segment itself.
"But you will find that other organisations, like ourselves, will segment brokers into those that are professional and those who are not putting in the effort to build sustainable businesses," she said at a media lunch in Sydney yesterday.
Her comments come following the CBA implementing its new accreditation policy which requires a minimum volume of four lodgements in a six-month period to encourage brokers to maintain their knowledge of the bank's products, policies and processes.
Other banks have also started to segment brokers. In May NAB altered its star rating system to give its 4-star brokers access to higher LVRs and new services including access to real-time online NAB and Homeside customer information.
"Brokers need to understand what is needed in terms of quality and they need to ensure they have a level of confidence and competency," Cummings said.
"Poor quality deals are blocking up the system for other professional brokers," she added.
