The managing director of the Finance Brokers Association of Australia has provided some timely advice for the head of the Bendigo Bank – ‘focus on your own performance instead of attacking brokers’.
Peter White said Bendigo Bank is wrong to support the Hayne recommendation scrapping commissions to brokers. “It’s timely that Bendigo Bank attacks brokers on the same day they announce weaker than expected first-half profit results.
“While the market was watching Bendigo Bank shares plunge 6.8 per cent in value, their managing director was supporting a fee-for-service model for the broking sector – a ridiculous proposition that would return market dominance to the big banks.
“Marnie Baker was quoted saying current arrangements enhance the risk of poor or conflicted advice, but she doesn’t seem to understand that brokers do not give advice, they provide credit assistance as described in legislation.”
Ms Baker also suggested a lack of competition was a contributor to the system’s woes.
“What do you think will happen if brokers are forced out?” asked Mr White. “There will be less competition and the big four banks – not Bendigo – will benefit.”
“Perhaps Bendigo Bank’s shareholders would prefer the leadership team focus on boosting their own results rather than firing shots at brokers who focus on the needs of borrowers, rather than the profit margins of banks.”