Non-majors declare themselves ‘fit to play’

by Mackenzie McCarty06 Jul 2012

Banks outside the four major lenders are holding their own and are well positioned to win an intensifying war for bank customers based on service and satisfaction.

ING Direct head of delivery Lisa Claes has said non-major lenders were beginning to slowly claw back the ground they lost in the fallout following the global financial crisis.

“I think in the last 12 months we have seen a slight kick-up in our share of new business but the sector certainly hasn't regained the ground or the place it had pre the GFC,” she said.

However, Claes said the drastic increase in concentration among major lenders had stopped increasing, and the market was now seeing other banks and non-banks increase share.

The result is an intense ‘war for the customer’, amid conditions that include a slowing credit market, a growing reliance on deposit funding and pressure on net interest margins.

“The category outside the majors is a healthy one but you need to be fit to play, because it is a highly competitive one. Of course, the majors aren't sitting back saying we have got the scale so we are happy; they are fighting just as hard and they are big engines.”

Claes said in such an environment, the focus on service and satisfaction by all lenders will continue, and some non-major lenders had a distinct advantage. For example, ING Direct can demonstrate among the highest bank customer net promoter scores and satisfaction ratings.

“We need to leverage our agility, the fact we are smaller scale and can turn things around more quickly, and our ability to have a more forensic approach with our customers and third parties, in addition to our global background and heritage,” Claes said.

For the full story, see Australian Broker's latest issue 9.13, out now.


  • by BRIAN TAYLOR 6/07/2012 2:51:22 PM

    Brokers should take notice of this and be more adventurous.

  • by Positive Broker 7/07/2012 8:18:09 AM

    I agree with Brian. Brokers should have non majors ranked first on their panel. The fact is they have better products , rates & service.

  • by ozboy 9/07/2012 10:49:04 AM

    Yes there is something here for all brokers, I think some are once bitten twice shy. Our business has one second tier lender that we will not deal with again until there is a change at the senior management level. They constantly promise things have changed when they haven't and our bdm goes missing every time the wheels fall off. Some of these senior people need to understand that if they keep coming out with anything less than truth they are hurting their brand. With less new players coming on board and older players now remembering the pain from their previous dealings, it is becoming more and more difficult for these people to keep ploughing the same fields with the same manure...hahaha one for the country brokers!