Changes are under way in the wholesale, or third-party, or what's now formally known as the "partner advised banking" division of Bendigo and Adelaide Bank. The key theme is more direct control by the bank of relationships with customers.The shift in approach began to emerge late in 2008 and presumably the reasoning was reinforced by the shock of the alleged fraud at Australian Motor Finance. The bank uncovered irregularities at AMF in late January and appointed receivers to its customer.A related shift is that Bendigo is now chasing up home loan arrears for borrowers who took out loans through third-party mortgage managers.At a profit briefing yesterday Jamie McPhee, chief executive of partner advised banking at Bendigo, said there was "a lot of subordination in that program" - the loan to AMF - "and at this point in time, this subordination more than covers the numbers that have been talked about, the alleged fraud."Based on a report last week in The Age and in turn based on court proceedings, the bank alleges $12 million fraud involving 700 allegedly fake car loans by Australian Motor Finance."The data is still being worked through, the bank does have the data, it is recreating that data, and until we know more about that, what actually is behind the alleged fraud and what the numbers are, it's very difficult to make any more specific comments other than we're pretty comfortable with the level of subordination at this point in time that's in that program."  As for the wider issues, McPhee said: " There's two big changes to that business that we've done.  This was a review that we did on the business prior to Christmas, that had nothing to do with AMF, which was that some of the portfolios that are being funded on third-party systems, we felt that we didn't want to do that going forward."So all the portfolios will be funded on the bank's system going forward.  "The second one was that, what we actually haven't historically done through these programs, is if you like, borrow verification and actually talk to the end customer."And that's a big drive that we're putting through this business model, is that we want to become more connected with the end customer and actually have dialogue with the end customer."Rob Hunt, managing director of the bank added: "Right at the very start of the merger [with Adelaide Bank] we could see that some parts of the partner business needed to be reshaped and that was very much one of them."You do need  to be able to make some connection and you need to make sure that your partner has the capability of doing more than just providing product; in other words, making a connection and to a large degree we're simply just reinforcing that now."