National Australia Bank (NAB) has announced it will end its ‘Introducer’ referral payments program from this October.
The move is a response to the findings and recommendations of the banking royal commission, with Chief Executive Officer Philip Chronican noting that it was important 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 need to be simpler and more transparent to earn trust. We have to put customers first, to be a better bank. 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,” he said.
NAB will still welcome referrals and will continue to build strong relationships with business and community partners, but no ‘Introducer’ incentive payments will be offered.
“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,” Chronican said.
The banking royal commission highlighted how NAB bankers had falsified loan documents and signatures, and provided unsuitable loans to benefit from the scheme.
NAB’s Introducer program brought in over $24 billion in home loans during the period when the misconduct occurred from 2013 to 2016, according to a report by Reuters.
