One non-bank mortgage lender may soon be battling the major banks on their home deposit-taking turf as the customer demand for full-service offerings increases in the future.
Speaking with Australian Broker, Firstmac managing director Kim Cannon says that Firstmac is looking to expand into a number of areas that will give it a broader offering outside of pure mortgages.
"We are about to launch a new internet banking site called Live, and we are moving into selling other products including lifestyle and life insurance," Cannon said.
"Fairly soon we will be doing deposit products including transaction accounts and term deposits branded under Firstmac," he said.
Cannon said he expects that this will bring the non-bank into direct competition with the major lenders.
"The next battleground may not be home loans, it could be against the banks on their own home turf with some of the stuff they make their money out of," he said.
Cannon said the push is driven firmly by the customers, who no longer want pure mortgage firms. "If you are just going to be a home loan company, well I don't think the custoer of the future wants that."
The sentiment applies to brokers, with Cannon saying he is currently 'interrogating' the ability of brokers to sell additional products such as deposit products, as well as insurances.
"There is a really big question mark over that."
However, Cannon said that brokers are much more sophisticated than they once were, and they would need to continue to upskill if they are to capture the customer of the future.