South African banks, have not been completely unscathed by the tough economic conditions. As a result, they have had to look at ways to reduce their operating costs and improve profitability.
After implementing a range of cost cutting measures including tightening of Rate Concessions (interest rate discounts), Banks have moved to reduce the commissions paid to Bond Originators and Estate Agents.
Bond Originators have helped to improve service levels offered to Homeowners, by negotiating for lower interest rates and more benefits on the clients’ behalf.
But the bigger originators demanded huge commissions from the banks. The latest move to cut the commissions will help to level the playing of this industry.
The double standards of old will be corrected and those companies that offer a quality service to their customers will naturally begin to rise to the top of the industry.