Abbey for Intermediaries is to introduce an incentive system for brokers which will see brokers rewarded with faster processing and access to exclusive products if cases are packaged correctly.
Under the ’Reward Efficient Brokers’ initiative brokers will be measured by the lender against certain criteria and standards, such as the quality of the applications and conversion rates from application to completion.
More efficient brokers will then be rewarded with faster processing terms, including the ability to fast-track cases.
They will also be given more exclusive products, such as higher LTV deals, and be granted more access to underwriters.
Equally, brokers who fall short of Abbey’s standards will come under more scrutiny from the lender.
Abbey plans to hold initial discussions with its key accounts on the scheme within the next three months, and will look to set up a formal system later this year.
Abbey says its proposals to “treat the best brokers better” is one of its key initiatives for this year.
The lender first made key distributors aware of its plans at the Abbey key accounts conference held in Santander city last month.
Abbey’s analysis shows that when comparing the top quartile of business writers against the bottom quartile, the top quartile converts 5 x more applications to completion and submits loans that are 2 x better quality than the bottom quartile of brokers.
The lender says it has taken the idea for the reward scheme from a company called QinetiQ, a former government defence research firm that continues to work with the Ministry of Defence.
Iain Laing, chief credit officer at parent company Santander UK, says: “It is traditional for firms to distinguish between different kinds of accounts.
“What we are trying to do is raise the standards across the board, be transparent, and create benefits for those brokers who are packaging cases well.”