National Australia Bank today announced it will end its ‘Introducer’ payments program, effective 1 October 2019. This means NAB will no longer make referral payments to introducers.
Chief Executive Officer, Philip Chronican said it was important to keep improving, taking action 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 need to be simpler and more transparent to earn trust. We have to put customers first, to be a better bank,” Mr Chronican said.
“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 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 our 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.
“I understand the significance of these changes for our people and our industry, yet I am certain it’s the right thing to do. NAB has a significant role to play in leading the change our customers and the community want to see.”
This announcement follows recent action NAB has taken to be a better bank including:
- Keeping all NAB branches open in regional and rural Australia until at least January 2021.
- Opening four customer connect centres in Toowoomba, Tamworth, Bendigo and Bunbury to service regional, agribusiness and small business customers.
- Extending the protections of the Code of Banking Practice to small businesses with less than $5 million in total borrowings, up from the previous agreed level of less than $3 million.
- Supporting 72 of the Royal Commission recommendations, with 26 of the recommendations either completed or in process of being implemented.
We recognise some sporting clubs benefit from the Introducer payment program. We have a proud history of supporting grass roots and local sporting clubs and will provide equivalent sponsorship to those clubs impacted by the change.