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Non-banks say they are taking the fight to mainstream lenders and forecasting a greater share of the market.
The non-banking sector claimed five of the 12 gongs at last week’s Australian Lending Awards.
CUA was named ‘best non-bank’ and ‘best mutual’, Resimac was named ‘best self-employed lender', Pepper was named ‘best specialist lender’ and Heidi Armstrong from State Custodians was named ‘best industry thought leader’.
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Resimac chief operating officer Allan Savins said non-banks trumped banks when it came to turnaround times, personalised service and giving brokers a direct line to credit decision-makers.
“This can only assist the broker to look like a star in the eyes of their clients,” he told The Adviser.
“Superior service and the ability to say ‘yes’ more often gives the broker the opportunity to bolster their volumes, increase their bottom line and enter long standing relationships with new clients.”
La Trobe Financial chief investment officer Paul Wells said non-banks generally offered brokers a broader product range than banks.
Mr Wells forecast that non-banks would increase their market share as more and more people used the internet to shop around.
“We expect to see a significant increase in loan origination volumes over the coming two years as more consumers become comfortable with long-standing non-bank alternatives and other product initiatives unfold,” he said.
CUA’s general manager of products and marketing, Jason Murray, said non-banks had to be innovative and market themselves well if they wanted to remain relevant.
Strong customer service, competitive products and a good digital offering were also important, he added.
“Non-banks need to do things faster, smarter and better than the big banks to ensure we continue to attract customers,” he told The Adviser.
Heidi Armstrong, chief executive of direct-to-market lender State Custodians, said non-banks forced the majors to lift their game on pricing, innovation and service.
She said non-banks like State Custodians had to work hard at generating positive word-of-mouth because they didn’t have the marketing budgets of the big four banks.
Prominent aggregator Australian Finance Group has noticed a trend among consumers to look outside major-owned brands, said general manager Mark Hewitt.
He said the new generation of borrowers wasn’t locked into the view that there were only four lenders in the country.
“You’ve got people now who don’t see bricks and mortar as being an essential part of a banking relationship, so they’re prepared to look for different options,” he told The Adviser.
