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Jessica Darnbrough
Non-banks and credit unions are expected to make their mark on the industry, aggregation heads have claimed.
Speaking to The Adviser, Vow's chief executive Tim Brown said while many borrowers were hesitant to be placed with non-banks during the global financial crisis (GFC), they are now enjoying a return to form.
"I think during the GFC it was very difficult, because clients were looking for that flight to safety. They saw the big banks as offering that safety. But I think that has become less of an issue today. I think the non-banks are a genuine threat and I think they will build up their market share or penetration again and we are seeing some of that occurring now," he said.
Mr Brown's comments were echoed by FAST's chief executive Brendan Wright, who said non-banks and credit unions were making a return to form.
"They have the opportunity to create competition and pick niches in the marketplace because they are small and nimble. From an aggregator's perspective, they are essential to any panel," he said.
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