ASB changes commission payment system. Will trail comm come?

The big four bank has updated its commission payment system for both its ASB and Sovereign Home Loans brands.

ASB has taken the move to make sure its payment system is "fit for purpose and provide a good user experience", the lender said.

Its new system, introduced at the end of June, is said to be more like the old Sovereign payment platform. However, the changes won't see ASB adopt trail commission payments, the bank confirmed.

ASB has also updated systems to speed up information sharing between brokers and the lenders.

A spokeswoman said its new systems will give advisers "visibility of the loan application process through to loan settlement": "Both updates are designed to improve communication and focus on supporting brokers and advisers to provide good customer outcomes."

Advisers say the new commission system is quicker and more efficient. 

Bruce Patten, head of growth at NZFSG, said the bank was now paying commission on the same-day as settlement, as well as making same-day clawbacks.

"There's better broker-banker interactions, and advisers are being informed throughout the process. It's an interactive system that keeps you fully informed all the way through, with email updates when the bank has started working on it. It cuts down on a lot of unnecessary phone calls," Patten said.