subscribe to our newsletter
Aussie dismisses bank-ownership critics

Aussie dismisses bank-ownership critics

Aussie’s top executive has dismissed claims that CBA has influence over the group’s brokers.

Speaking to Mortgage Business, Aussie Home Loans executive director James Symond said CBA’s ownership of Aussie Home Loans is not out of step with industry trends as banks own a share in all major Australian brokerages.

“Whether you are AFG or Connective or the NAB channels, I don’t think there is a major broker in Australia without a bank on its register,” Mr Symond said.

“It’s not who is the majority or minority owner, it’s the actions of the group,” he says, adding that any suggestions that CBA’s ownership of the group has led to a greater proportion of CBA loans being written are unfounded.

“If a broker out there thinks that by having a minor or major bank on their register means that Aussie is flogging CBA loans, that’s not true.”

Mr Symond’s comments come after a recent spate of criticism aimed at vertically integrated businesses where banks own aggregators.

In its submission to the Competition Policy Review, the Customer Owned Banking Association (COBA) asserted that in a genuinely competitive market with real choice, consumers need to be able to easily understand the true identity of the entity they are dealing with. 

“Major bank multi-brand strategies are intended to lure customers who don’t want to bank with a major bank and/or to compete against genuinely independent competitors without providing any benefit to the bulk of the major bank’s existing customers”.

“CBA’s takeover of Aussie Home Loans means that one of the leading mortgage brokers in the market is subject to the interests of the largest lender in the market,” the submission said.

But according to Mr Symond, CBA’s ownership of Aussie has not influenced the independence of its brokers.

“So far, outside of a higher awareness of risk and compliance and some of the paperwork that goes with that to be frank, there has been zero influence in the field with our brokers in particular with any sort of big bank interaction,” he said.

 

Aussie dismisses bank-ownership critics
mortgagebusiness logo

Latest News

A regional bank has revealed its full-year 2018 financial results, reporting a fall in residential mortgage settlements amid “challenging...

Former prime minister John Howard has called on the financial services royal commission to “bear in mind the stability and contribution”...

Macquarie Group has secured a stake in Investa Office Fund (IOF) months after Blackstone submitted a $3.1 billion takeover proposal. ...

FROM THE WEB

podcast

LATEST PODCAST: Cash rate to remain unchanged, corporate cops for the banks and a new type of credit card

Do you expect access to credit to get harder this year?