The National Australia Bank has announced they will be terminating their ‘Introducer’ payments program, which some finance commentators have dubbed spotters’ fees, effective 1 October 2019.
According to the bank’s Chief Executive Officer, Philip Chronican, it is a priority for NAB to keep improving and changing to be a better bank.
“Through the Royal Commission we heard clearly that our actions need to meet the expectations of our customers and the community.
“We want customers to have the confidence to come to NAB because of the products and services we provide – not because a third party received a payment to recommend us,” Mr Chronican said.
Commentators are speculating that this move may pressure other banks to follow suit and put an end to banking institutions paying members of the public for referring new mortgage customers – although individuals are only entitled to the ‘introducer’ payment if the referral leads to a mortgage being approved.
Mr Chronican recognised the significance of these changes for NAB, its bankers and the industry, but said he was certain it was the right thing to do to deliver better outcomes for their customers.
“Like other businesses, we will still welcome referrals and will continue to build strong relationships with business and community partners. However, there will be no ‘Introducer’ payments made,” he said.
“NAB has a significant role to play in leading the change our customers and the community want to see.”