Anti-bank mood favours non-banks
By
Kevin Eddy
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13/08/2010 5:55:00 AM
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Growing anti-bank sentiment could see customers return to non-bank lenders in droves, according to a former founder of Wizard.
Paul Ryan, CEO of Opportune Home Loans, told Broker News that potential mortgage interest rate rises by the major banks outside the RBA rate could see consumers deserting banks, especially following the record profits announced by CBA this week.
"Record profits like those announced by CBA could make it very hard for the major banks to justify a independent mortgage rate rise - they risk being seen as greedy," said Ryan. "That could drive consumers to look for other options, such as second-tier banks, credit unions and non-bank lenders."
Ryan suggested that we could see a similar situation to that of the mid-Nineties, which saw the rise of lenders such as RAMS, Aussie and Wizard.
"The market is screaming out for new players to come through and take that role, and any number of market players could do that - including Opportune," he added. "It would mean a lot of work, but it would be great for consumer choice, for ensuring competitive rates, and for the overall customer experience."
Related stories:
CBA profit sparks mixed response
Opportune outlines 'second coming'
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