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Jessica Darnbrough & Vivienne Kelly
The big banks are losing their grip on volumes via the third party distribution channel, new data has revealed.
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According to AFG’s latest Mortgage Index, Australia’s non-majors managed to grow their market share to 24 per cent in September – significantly higher than the 18 per cent recorded this time last year.
While strongest among first home buyers, where they comprise over 1 in 4 new home loans, non majors also grew market share among investors and borrowers seeking to refinance.
Speaking about the results, AFG’s general manager sales and operations Mark Hewitt told The Adviser that he was optimistic the non-majors could grow this share further still in the coming months.
“We’d like to see it get to the stage where the non-major banks get 30 per cent of our loans,” Mr Hewitt said.
“The strengths of our major banks are a large part of the reason we didn’t suffer during the GFC. They kept our economy ticking over. But we do need a competitive market, and the non-majors are vital for continuing competition.”
Mr Hewitt’s aspiration to have Australia’s non-majors accounting for 30 per cent of all loans written by the aggregator could come to fruition sooner rather than later if The Adviser’s recent Third Party Banking Report: Non-Major Lenders is any indication.
According to the report, Australia’s non-majors have significantly improved their broker proposition over the last 12 months, with five of the eight lenders ranked improving their overall broker perception score.
Moreover, the non-majors are now beating the big four in a number of key business areas including channel conflict and client support.
In every other key business area, the non-majors' broker perception scores were on par with the big four.
