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Jessica Darnbrough
FAST’s chief executive, Brendan Wright, has dismissed concerns that white label solutions are negatively impacting Australia’s non-major lenders.
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Earlier this year, at The Adviser’s annual non-majors roundtable, some of the bank heads expressed concerns that aggregator white label solutions were negatively impacting their place in the market.
According to some of those present at the roundtable, white label products, which were originally developed to inject a bit of competition into the lending landscape, are having the reverse effect and stealing share away from the smaller players.
However, FAST’s Mr Wright dismissed the claims and said white label solutions, such as FASTLend, did in fact inject competition back into the market and forced all of Australia’s lenders to lift their game.
“Brokers will only offer white label products to their clients if the loan is ‘not unsuitable’,” he told The Adviser.
“The product really needs to not only be competitively priced but in the best interest of the client. The reason white label solutions have become so popular is because they do meet the needs of the clients and they are competitively priced.
“The lending space has never been so competitive, which is good for brokers and borrowers. For lenders to succeed in this space, they have to offer competitively priced, sound products and an excellent service proposition. White label solutions not only inject more competition into the market, it forces all lenders to offer excellent products and service – which benefits the borrowers at the end of the day.”
Mr Wright’s comments were reinforced by Choice’s chief executive, Stephen Moore, who argued that white label products keep all of Australia’s lenders on their toes and force them to be at the top of their game.
“Make no mistake, competition in the lending space is alive and well – thanks in some small part to white labelling. Brokers and borrowers want and demand competition and white label products provide them with that.”
