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Jessica Darnbrough & Vivienne Kelly
More than 70 per cent of brokers believe the majors’ market share will drop in 2013.
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According to new data from The Adviser, 70.3 per cent of brokers believe the majors will lose market share to the non-banks, non-majors, credit unions and mutuals in the New Year.
Of the 212 respondents to an online survey, just 29.7 per cent said they thought the majors would retain their market share for at least another year.
According to research house RFi’s latest Australian Mortgage Market Wrap, the combined market share of the big four is 80.3 per cent.
While this percentage was 0.1 per cent down on this time last month, the majors’ market share has largely remained “steady” for the past 24 months and counting.
Despite this, Australia’s non-banks, non-majors, credit unions and mutuals remain bullish about the year ahead and are confident that broker perceptions for 2013 are correct.
Pepper’s director of sales and distribution, Mario Rehayem, said non-banks will definitely enjoy “growth in the New Year”.
“There will be a definite growth for the non-banks that have invested in their people, technology and most importantly efficiency in processing. Brokers will recognise that the support they receive from a non-bank is equally important as price,” Mr Rehayem told The Adviser.
Mr Rehayem’s comments were largely echoed by Better Mortgage Management’s managing director Murray Cowan who said brokers and their borrowers will move away from the big four in 2013 and look for alternative lenders.
“We see continued gradual improvement for the non-bank sector in 2013 as customers and brokers rotate away from the big four banks towards non-bank lenders,” he said.
“With securitisation markets continuing to improve following the GFC, non-banks dropped their rates more than banks over the past year and our products are now more than competitive with the banks on price and product solutions.
“The competitiveness of non-banks may continue to improve in 2013 as banks face their own funding issues related to Basel 3 regulations which will require them to hold more capital, restricting their funds for lending.”
