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Bank of Queensland's re-entry into the broker market will not result in any significant volumes being written - but it will create challenges with the current BOQ franchise network, one industry specialist has claimed.
The broker market is professional and mature and it will not embrace lenders who lack a clear long term commitment to supporting the channel, according to Brendan O'Donnell MD at Liberty Network Services.
"I don't believe that you will find much support from brokers for BOQ. In Queensland there may be some support given the strength of the brand there, but nationally it will get very little - if any - support," O'Donnell told the MortgageMix following news that BoQ intends to return to the broker channel now that it faces a $90 million loss.
On BOQ pulling out of the broker channel in 2004 to expand its own branded distribution network, he said businesses tend to develop topical strategies linked to each ones unique circumstance.
But he said those same strategic calls need to be achievable - and sustainable - in the medium to longer term.
"Strategic decisions made to rectify short term challenges are often fraught with danger," O'Donnell said.
And about the broker backlash to the news, he suggested BoQ's reason for re-entering the market is the issue.
All bets back on again, as BoQ sends out broker mayday call - Desperate times call for desperate measures, and it seems the prospect of a $91 million first half loss has prompted the Bank of Queensland to send out an SOS to Australia's mortgage brokers for immediate assistance.
Brendan O'Donnell: Only 'holistic' approach will save broker proposition - In this new era of professionalism advice together with a more holistic approach to meeting customers' needs is critical, Liberty Network Services' Brendan O'Donnell has said.
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