AMP Bank has introduced a $2,000 cashback offer for eligible refinancing customers, available until 30 September. The incentive is designed to encourage brokers to adopt the bank’s new broker platform, developed in partnership with Simpology.
The announcement was made during a seminar at AMP Bank’s Sydney headquarters, where brokers were given a detailed demonstration of the platform’s functionality. The bank aims to strengthen its position in the broker channel, which generates up to 90% of its home loan business, according to AMP Bank.
A Targeted Push Towards Brokers
Unlike many previous cashback initiatives, AMP Bank’s offer is not aimed at direct customers but exclusively at those engaging through brokers. Paul Herbert, head of lending and everyday banking distribution at AMP Bank, said the strategy was “a neat way to support that transition of using a system that maybe is new to (brokers)” and to ensure borrowers benefit from their broker’s expertise.
The cashback is available only when a broker lodges a refinance application via the new platform and is paid upon settlement. According to AMP Bank, this initiative is intended to reward both the broker’s effort and the borrower’s decision, reinforcing the bank’s commitment to its intermediary-led model.
This move comes as other major lenders, including Westpac, NAB and Commonwealth Bank, have stepped back from offering publicly advertised cashback deals. While the Australian Financial Review reported that NAB and Westpac have given bankers discretion to provide them, such offers remain rare and are not part of their mainstream business strategy.
Controversy and Competition in Cashback Offers
Cashback incentives have long divided opinion within the mortgage industry. Peter White, managing director of the Finance Brokers Association of Australia (FBAA), previously warned that these offers require brokers to undertake greater due diligence to ensure they align with the borrower’s best interests.
In 2023, ANZ reduced its refinancing cashback from $4,000 to $2,000, a move that Anja Pannek, chief executive of the Mortgage and Finance Association of Australia (MFAA), described as “a step in the right direction.” Despite these reductions, smaller lenders such as Regional Australia Bank, BankVic and ME Bank have recently reintroduced cashback incentives to stay competitive.
AMP Bank’s latest offer, according to the bank, is focused on incentivising platform adoption rather than sparking a price-driven cashback race. For brokers, this represents an opportunity to combine a new technology platform with a borrower-focused financial benefit, potentially reshaping how cashback strategies are deployed in Australia’s lending market.
