Bank of Queensland has today gained access to a significant new revenue stream with partner organisation HBF launching white-labelled Home Loans and Investment Home Loans.
HBF is Western Australia’s largest health insurer with about 900,000 members and approximately 65 per cent of the Western Australian health insurance market.
BOQ Managing Director David Liddy said that the Bank’s move into this new area of product distribution was a significant milestone and provided a great opportunity to reach new markets.
“This is a major step forward for Bank of Queensland in its development and provides a significant new revenue stream for the Bank,” Mr Liddy said.
“It provides BOQ products to a new range of customers in a new market, which we are also opening up through our own branches and business banking assets,” Mr Liddy said.
Mr Liddy said the HBF partnership would not impact on the Bank’s roll-out of its own franchised branch network in Western Australia, the first two of which opened earlier this year in Subiaco and Applecross.
“These two areas of our business are completely different and separate. Our Owner-Managed Branches are based on personal service and full-service banking. Our alliance with HBF provides specific products for their members under the HBF banner,” Mr Liddy said.
“We see the two as complementary to our overall strategy of growing and diversifying, both geographically, and with our income streams.”
HBF CEO-Elect Rob Bransby said HBF had no aspirations to become a traditional bank and had formed an alliance with BOQ to provide the new products, which would combine HBF’s customer focus with BOQ’s financial knowledge.
“BOQ is a well-established financial institution with a focus on doing the right thing by its customers, something we also pride ourselves on providing,” he said.
Mr Bransby said the products were developed following research on the types of products and features that HBF members would like to purchase from the member-based organisation.
“Both HBF Home Loans and Investment Home Loans will have no monthly service fees; a one-off payment for loans of less than $1 million; and very competitive interest rates, including a variable interest rate that is below the rate offered by the major banks.”