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New data has revealed that non-major banks experienced a big jump in market share in 2014, with three in particular leading the way.
AFG has revealed that its brokers used the big four banks and their sub-brands for 76.2 per cent of all mortgages in January 2014 but only 67.7 per cent in December 2014.
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The 32.3 per cent share that the non-majors enjoyed in December is a record result for AFG.
The three lenders that made the biggest gains in market share in 2014 were all non-major banks, while the biggest declines were experienced by the majors and their sub-brands.
Suncorp increased its share from 3.9 to 9.7 per cent, Heritage Bank from 0.7 to 2.4 per cent and ING Direct from 2.5 to 3.7 per cent.
Bankwest dropped from 9.0 to 5.0 per cent, Commonwealth Bank from 17.5 to 14.8 per cent and St George from 6.8 to 5.8 per cent.
The non-major banks experienced a surge in refinancing activity during 2014, increasing their market share from 28.4 to 41.4 per cent – their best result in any category since the GFC.
Their fixed-rate market share rose from 36.4 to 38.7 per cent, their first home buyer share rose from 26.7 to 31.5 per cent and their investor share rose from 19.7 to 26.7 per cent.
AFG’s general manager of sales and operations, Mark Hewitt, said 2014 was the most vigorous year of lender competition since the GFC, with this trend likely to continue in 2015.
“Some are predicting a slowdown in market growth this year, and this will intensify competition even further. In particular, I am expecting the majors to hit back hard in the next quarter,” he said.
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