A Word from MoneyPlace
The personal loan market is poised for continued growth as more Australians seek financial flexibility. MoneyPlace is committed to leading this evolution with innovative products and a customer-first approach, helping brokers and clients alike to navigate the future with confidence.
At MoneyPlace, we leverage cutting-edge technology to streamline the loan process. Our digital application platform and automated approval system helps ensure quick turnaround times, with most loans being approved within 24-hours and funds disbursed the same day. Our commitment to technological innovation helps us provide superior service and stay ahead of the competition.
MoneyPlace personal loans give brokers the opportunity to offer tailored financial solutions, helping them grow their business and build stronger client relationships.
We are committed to developing strong partnerships with brokers by offering dedicated support, seamless processes, and valuable resources. Our goal is to empower brokers to better serve their clients and grow their businesses alongside us.
As Australians continue to grapple with affordability, the appetite for personal loans has been booming.
For many Australian households, the last financial year represented a mixed bag. The first half of the year saw the Reserve Bank of Australia (RBA) increase the cash rate by another 25 bps after a rapid rise the year before, which was followed by a six-month hiatus to let the dust settle. With the cash rate now at 4.35 per cent, those with mortgages are feeling the pinch, while renters are also having to tighten their belts as landlords increase rents to cover their mortgage repayments.
Personal loans are therefore providing some relief for households feeling the pinch. The difference this year is they’re also providing opportunities for lenders that are already glimpsing bright shoots on the horizon. And that’s good news for brokers.
Amid these cost-of-living pressures, brokers are well placed to help support borrowers achieve their dreams.
What is the demand for personal loans?
The value of new borrower-accepted loan commitments rose to $2.58 billion, according to the most recent Lending Indicators data published by the Australian Bureau of Statistics (ABS). While this figure represents a modest 0.8 per cent monthly lift – following a 4.1 per cent rise recorded in March – it’s a whopping 18.1 per cent year-on-year increase.
More than half of this demand for new loans came from the purchase of road vehicles, equating to $1.6 billion in new loan commitments.
The ABS also reported a spike in the value of personal loans for external refinancing to $191 million, a 17.9 per cent year-on-year increase, alongside rises for personal loans for smaller purchases such as household and personal goods and travel and holidays.
Matt Hall, head of sales and partnerships at personal lender MoneyPlace, tells The Adviser that consumer expectations present new opportunities for brokers to diversify into the personal lending space.
“In the old days, everyone just thought about personal loans for debt consolidation or car purchases,” Hall says.
"This marks a complete shift in mindset for the industry. Brokers are diversifying more than ever, looking to enhance their portfolios and offer a wider range of solutions to their clients.
“People have many important goals they want to finance now and being able to facilitate that is what we’re all about and where we’ve seen a dramatic increase.”
Hall says larger discretionary purchases, such as home improvements or new appliances, are good examples of where personal lending can be a good fit, noting brokers are getting smarter in understanding the wide variety of solutions these products can provide.
“It’s not just about the typical deck installation or car purchase (although we do finance those); people have diverse needs they want a simple solution to because it’s important to them,” Hall says.
“And being able to provide that is what we’re all about. We pride ourselves on also being able to fund anything that is legal. So that’s really opening the door and taking the blinkers off as to where people’s imaginations can go.”
