Original article by James Frost
The Australian Financial Review – Page: 13 & 16 : 26-Mar-19
National Australia Bank has advised that it will end its controversial ‘loan introducer’ program from 1 October. The program sees non-bank employees receive a fee for referring home loan clients, with NAB stating in 2018 that it generates one out of every 20 mortgages written by the bank. NAB also says the program has generated around $2.4 billion worth of home loans, and that around $100 million in referral fees have been paid. Interim CEO and chairman-elect Philip Chronican says he wants customers to come to NAB because of its products and services, not because a third party receives a fee for endorsing it.
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, KPMG AUSTRALIA PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE