Turnaround times improve – competition and retention tactics create issues
I can hear you all now, “It could not have got any worse.“
Turnaround times have officially turned the corner, nearly every organisation has reported a significant improvement in turnaround times for the third party channel and hopefully put to bed the most frustrating times for brokers and their clients.
Macquarie bank leads the way and hence unsurprisingly they have increased market share. Let’s hope this trend continues and approval times decrease further over the coming months.
FBAA CEO, Peter White, came out during the week and was scathing of the “dirty tricks” and the “over the top offers” to prevent an existing client from refinancing.
Initially, my thoughts were that it’s a been an issue for decades and it’s going to be an issue going forward.
You can expect an institution to allow valued clients to wander out the door and join a competitor, that would be foolish and very costly, however when you read between the lines and hear that clients have made approaches via their broker for a better, more competitive deal they have been outright declined on, you’d think, well I am off!
Not so quickly says the aggressive bank retention department and they in fact come over the top and offer a significantly better deal and in some cases cash back offers. This creates unnecessary work for the client and time consuming zero return applications for the broker.
- Is this the start of an attack on the third party channel?
- Is the third party channel in partnership with its suppliers?
- Is this a fair result for the client?
Being in direct competition to our supplies has always presented challenges, the creation of these type of challenges is unnecessary and a complete slap in the face to clients who, by all reports, qualify for a better deal in the first place.
The remedy is simple, do the right thing when the client first makes the enquiry and save everyone the angst.