Login
ISCOVER
Major bank market share has slipped in recent years as brokers and consumers embrace non-bank lenders; however, one industry stakeholder believes the majors will stage a comeback in 2014.
A recent straw poll conducted by The Adviser shows a majority of brokers are writing loans with non-banks.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
According to the results, 50.7 per cent claimed they frequently write non-bank products; 18.1 per cent said they do so “sometimes”; and 15.2 per cent claimed they rarely write non-bank loans.
Finally, 14.5 per cent of brokers said they never write loans with non-bank lenders.
According to CEO of Finsure John Kolenda, the past 12 months has been a great ride for the non-banks.
“We are seeing trends over the last three quarters that show increased competition from some of the smaller bank and non-bank players, and this aggressive push is catching broker market share,” he told The Adviser.
While he admits the trend is heavily in favour of second-tier and non-banks at the moment, he believes the major banks are planning on coming back with a vengeance.
“I think that some of the major banks are going to come back to compete quite aggressively in 2014.
“Overall the market is going to heat up amongst the lenders in competing for broker market share because we’re seeing that the broker market share is increasing.”
Consumers have also grown more accepting of products written by institutions they’ve never heard of.
“You’re always going to get some consumers who will only want to deal with the brands they’re familiar with, but likewise you’ll always get the consumers who prefer to deal with smaller institutions.
“There is a percentage of consumers who are looking purely at the rate and searching for the most competitive one, and they’re likely to take on non-bank lenders.”
Do you write loans with non-bank lenders? If so, be in with a chance of winning a bottle of Dom Perignon champagne by sparing two minutes of your time to give your feedback in our non-bank lending survey.
JOIN THE DISCUSSION