View more on these topics

RBS says intermediaries second to direct channel

Royal Bank of Scotland says it is committed to its intermediary channel after admitting it comes second on its priority list to branch-based business.

After making the revelation in its interim results, RBS insists that revamped broker channel RBS Intermediary Partners, which launched in February, is in good health and remains a core part of its business.

RBS argues that the reason its direct channel has taken priority is that some lenders have been pricing at a loss in 2006 and RBSIP did not want to get involved in a price war for broker business.

RBS marketing director for consumer finance Ian Stuttard says: “The emphasis has been greater on the direct side but in no way is it suggesting that we are not interested in the intermediary market. From mid-January through to mid-May, the intermediary market was extremely aggressive.

“In that time, HBOS were pricing at 30-35 basis points below the cost of funds. We have seen recent evidence that HBOS has pulled back and we have been prepared to participate more.”

Stuttard admits that RBSIP has experienced service problems since launch but says it is improving the broker experience.

He says it is also committed to setting up an online facility early next year.

Stuttard says: “We have some service issues on RBS purchase business and we have been open with brokers and have asked them to bear with us. If you do not have online capability, then you will always be at a disadvantage.”

Alexander Hall chief operating officer Andy Pratt says: “RBS was very aggressive in launching RBSIP. Maybe those expectations were too high.”

Recommended

Thinc Destini sets up BTL seminars

Thinc Destini has set up six buy-to-let seminars as it anticipates continuing growth of the market. The firm is encouraging advisers to bring their clients to the two-hour free seminars. Topics covered include Why Invest in BTL? and The Role Of The Landlord.

Square up to lending problems

If the Council of Mortgage Lenders does not think it has sufficient data for the sub-prime market, then it had better get a handle on it soon.

Product matters

One of the most successful fund-raisers of venture capital trusts over the last two years has been Octopus Asset Management, raising more than 100m for its Eclipse VCTs. However, being successful at fundraising does not necessarily equate to success at investment – just look at the Murray VCTs of the late 1990’s for example. Rather […]

Pru sold off equities before the markets took a tumble

Prudential pulled 3bn of with-profits money out of equities in the first half of this year to reduce the 69bn fund’s risk profile. The company decided in March to cut 2bn from its holdings in UK equities and trim back its Asian equities’ exposure from its with-profits life fund and has recycled the bulk of […]

Large-cap growth alpha thesis: seeking risk-adjusted excess returns

Content supplied by Loomis, Sayles & Company — an affiliate of Natixis Global Asset Management For mutual fund investors and managers of large pensions or endowments, a major challenge is to identify those portfolio managers who are most likely to deliver superior risk-adjusted returns in the future. Understanding how an investment philosophy informs a manager’s decision […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com