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Australia’s non-major lenders are steadily clawing market share from the majors, according to AFG’s latest Competition Index.
AFG’s figures show that the share of loans processed by non-majors rose from 20.6 per cent in March to 24.8 per cent in June, while major lenders saw a corresponding fall from 79.4 per cent to 75.2 per cent.
Significantly, it is not first home buyers who are boosting the non-major market share. Instead, non-majors have won more business from borrowers refinancing – up from 25.0 per cent to 29.6 per cent over the past two months.
AFG’s general manager of sales and operations Mark Hewitt said the latest figures are good news for competition and for borrowers.
“We have to see things in context. The USA has one lender for every 42,000 people. In Canada, that ratio is 1 to 77,000; in the UK, 1 to 139,000; and in Australia, 1 to 183,000. We have a long way [to go] before we start to catch up with other developed economies in terms of consumer choice,” he said.
Turning to individual lenders, Macquarie has shown strong growth over the past few months, accounting for 5.5 per cent of all loans in June.
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