Who would have thought hey? Our banks have been found ‘guilty’ of taking advantage of their loyal clients. I’ve been telling this to my clients for at least seven years!!
But this comment from the Key Points is not-entirely-truthful: “although financial institutions generally have high customer satisfaction levels, customer loyalty is often unrewarded with existing customers kept on high margin products that boost institution profits. For this to persist, channels for provision of information and advice (such as mortgage brokers) must be failing”.
Let me tell you the ‘bank imposed rules’ from when I was a broker/adviser – “if a broker was deemed to be ‘re-pricing’ his/her clients then their ability to retain their bank accreditation was at risk”.
In other words …. until not that long ago if you did the right thing by your clients and got them a better deal (especially with their current institution) then you could very quickly find life and business very difficult. By the way banks are/were always willing to cancel a broker’s accreditation as it meant more profits.
Which Bank …. was the worst? Your guess …. but that question should provide a clue.
As the sign in my office used to say (directly under that CBA slogan) “They’re All Bastards”.
Read the Competition in the Australian Financial System – Draft Report Overview below or simply click here to get a copy from the source.