EBS to open up to broker network

[ClubMan]

According to RTE:

Meanwhile the EBS says it's going to start selling through brokers for the first time, a sales channel it has heretofore shunned.

In an interview with RTE Radio EBS CEO Ted McGovern went on to say that borrowers taking loans directly from the society will be members (as normal) but that those going via a broker will not thus creating a two tier customer base. This, assuming that it comes to pass, seems, to me, to undermine EBS's committment to mutuality significantly regardless of what they say officially.

On a separate issue I found it interesting to hear Ted McGovern state that c. 42% of all mortgages are arranged through brokers. I didn't realise that it would be so high.

 

[garrettod]

Hi

Another step taken by the EBS to help benifit its members I see :rolleyes :

Dare I ask what benifit paying away part of the Year 1 earnings to a broker will bring to the members of EBS ?

Will the EBS offer it's members a discount on their lending rates, equal to the commission it would pay to a broker for bringing in the new business ?

Average payments are close to 1% of the loan amount for brokers these days ... nice easy money in the current envoirnment me thinks.

Regards

G>
www.rpoints.com/newbie

 

[N0elC]

Hi garretod,

Long time, no hear !

I did laugh out loud when you said:

Will the EBS offer it's members a discount on their lending rates, equal to the commission it would pay to a broker for bringing in the new business ?

It's a bit like asking if the recent problems in the peace process are likely to help Ian Paisley convert to Catholocism. It's a distant possibility, but extremely unlikely !!!

:rollin

I think post- Family First, this sort of botched attempt to buy market share by the EBS shouldn't come as a surprise.

So much for their oft vaunted benefits of mutuality.

:rolleyes

Cheers

Noel

 

[ClubMan]

In posting the above I was doing so in the hope of useful discussion/comment/feedback as opposed to sarky one liners. Oh well...

 

[N0elC]

EBS

Sorry if the banter offends your delicate nature Clubman. It's just that some find the concept of the EBS being an shining example of a well run mutual to be laughable.

Have a good and relaxing weekend: from the tone of your response it looks like you need it !

 

[ClubMan]

Re: EBS

My constitution is fine. Just that I have grown to expect more valuable/mature contributions than the above on such matters from most AAM contributors. I agree that there seem to be serious issues with EBS's high profile claims to committment to mutuality, especially in the light of this decision, but was hoping for some reasonable discussion of these rather than the usual kneejerk sarcastic one liners.

By the way, did yourself or garrettod ever set the ball rolling on the EBS demutualisation campaign or are you both waiting for somebody else to do the hard work?

 

[N0elC]

Re: EBS

It's unlikely that a motion for demutualisation would succeed at the present point in time, but if the EBS keep acting like this, who knows ??

Can we rely on your vote, when the moment comes ??

 

[ClubMan]

Re: EBS

Can we rely on your vote, when the moment comes ??

In spite of attempts to rejoin by transferring €130 of my SSIA to cash deposits I still don't seem to be a member unfortunately and would not have any vote in such a scenario right now.

 

[N0elC]

Re: EBS

That's not right.

What reason did they give for that ?

 

[ClubMan]

Re: EBS

No reason and I haven't had an opportunity to chase it up. Initially I assumed that I told them (or the interpreted my instructions as telling them) to transfer €130 to the cash/bond Summit Fund as opposed to cash deposits. However my latest SSIA statement seems to say that the bulk of my fund is in Summit and €130 is in cash deposits. I got some additional bumpf about members bonds and the deposit rate of interest payable. However I have never received confirmation of membership and have not received any annual reports etc. Must chase this up and then I'll get back to you about my vote.