Macquarie Bank has informed brokers that, effective “early next year”, it will no longer offer white-label mortgage products, as it moves to “simplify” its home loan offering.
“After considering feedback and the likely future evolution of the industry, we found the multiple white-label brands we offer add complexity in terms of technology and operations,” Macquarie said.
“We want clients to be able to access all the great features of our banking experience and future enhancements, so from early next year, we’ll no longer offer new white-label home loans.
Macquarie added that it intends to focus its efforts on “making the Macquarie home loan offering the best experience” for clients and brokers.
The bank also stated that the change only applies to new loans, stating that it will continue to serve existing white-label clients.
In its note to brokers, Macquarie also reiterated its commitment to the third-party channel.
During the course of the financial services royal commission, representatives of several lenders called into question existing arrangements in the broking industry.
However, former Macquarie CEO Nicholas Moore, who was recently replaced by Shemara Wikramanayake, told the commission that competition in the finance industry has helped drive down interest rates by 2.5 per cent and that this competition could not have occurred without the broker distribution channel.
Mr Moore also warned that further regulation in the third-party model could “severely hamper” the broking industry and encouraged decision-makers to “think broadly” about the implications of changes to the regulatory structure.
In its latest message to brokers, Macquarie said: “As we continue to grow, our commitment to the broker market hasn’t changed, and our focus remains on offering [brokers] the best possible product with top-tier service and competitive pricing.”
[Related: Macquarie announces board appointments]
Charbel Kadib is a journalist on the mortgages titles at Momentum Media.
Before joining the team in 2017, Charbel held roles with public relations agency Fifty Acres, and the Department of Communications and the Arts.
Charbel graduated from the University of Notre Dame Australia with a Bachelor of Arts (Politics & Journalism).