Non-banks gaining market share
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BN
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26/07/2010 5:17:00 AM
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Non-banks are beginning to reclaim market share lost during the economic downturn, as rises in interest rates cause borrowers to look for better deals through refinancing.
Australian Finance Group figures show refinancing accounted for 39% of new business in June, up from 33% for the previous six months, the highest result the group has seen since July 2008.
The Australian Financial Review reports that consumer confidence in non-bank lenders is returning, and that non-bank lenders are winning out because of the competetive pricing.
Speaking with Broker News, Mortgage House managing director Ken Sayer, Acuity Funding managing director Ranjit Thambyrajah said competition to Australia’s major banks is fast returning to the market, and is only set to increase as market conditions improve.
“Mortgage managers are in full flight right now,” Sayer said. “My understanding is that the banks’ market share has peaked, and non-banks and mortgage managers are taking some of it back as we speak.”
Thambyrajah agreed, saying of mortgage managers “the trend is there will be more coming in”.
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Country Broker on
26 Jul 2010 04:30 PM
yes I agree they are, but analyse the facts, Advantedge who are the largest are 100% owned by the NAB, Aussie are partially owned by the CBA, and so on, so either way the banks are getting a share of this market as well. It will take a long time for the genuine Non Bank sector to really get a significant share.