NAB Broker has promised to provide "compelling, consistent" service, after admitting a one-off December 2010 technical glitch had fermented negative perceptions among brokers.
Speaking to over 300 brokers in the ballroom of Sydney's Hilton Hotel yesterday afternoon, Flavell said that based on feedback from its broker network, a desire for constant service was a key priority, and that it was no good being "good one minute and terrible the next".
Flavell said a system enhancement in November 2010 - when the bank removed a piece of legacy software to establish one platform for processing loan applications - had resulted in a period of blackouts when brokers were unable to track the status of these loans via instant SMS messaging, as well as online. At the time, Flavell said there were 270 "in-flight" loan applications.
NAB Broker service feedback data showed that as a result, 38% of brokers were unsatisfied with the bank's service at the time, and only 39% declared themselves satisfied.
However, Flavell said the bank was now resourcing ahead of time and "running rich" in its processing team to ensure consistency. As a result, Flavell said more recent data showed a shift in satisfaction, with 55% of brokers now indicating they are satisfied with the service, and only 22% unsatisfied.
Flavell said he considered the bank's current average turnaround of 7.5 days was "too high", and that the bank would "feel more comfortable" with a turnaround of between five and seven business days, as long as this is provided at least 90% of the time, in line with desires for consistency.
He said that this meant there was an obligation on both parties - both bank and broker - to ensure that loans were submitted appropriately and processed effectively. He declared himself "frustrated" with other banks who indicated that the responsibility for conversions lay entirely with the broker.
Reassuring brokers, Flavell also indicated the bank will hold its commissions at their current level for at least the next few years. He said the commission model had been designed to withstand a business cycle of seven to eight years, and the "principles are still sound" in the middle of the cycle.
NAB Broker figures show that brokers will soon begin to see the long-term benefits of NAB's "ramped" trail commission structure, which pays higher trail commission over time, up to 0.35% after five years.
In chatting with Chris Carn, Head of Homeside Lending, we learned that Homeside (100% owned by NAB) is taking on a new direction, communicating with brokers more and changing their ways.
Lets see if this is true in the coming months...
(Source: By Ben Abbott | 1/04/2011 6:00:00 AM www.brokernews.com.au)
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