2011 could be the year of the non-bank lender, according to Tanya Sale.
Outsource Financial’s chief executive officer Ms Sale told The Adviser the non-bank sector would benefit from growing dissatisfaction towards the majors.
“Both brokers and customers have had a gutful of the big industry players in 2010. The big four raised rates out of cycle and let their quality of customer service slip. If a bank doesn’t provide a sound level of support and service, it looks bad on the broker, not the lender,” Ms Sale said.
“Brokers will not want to put their clients or reputation in jeopardy, so they will start looking for alternatives in the non-bank sector.”
Ms Sale’s comments were largely echoed by Sintex’s general manager Cathy Dimarchos.
Speaking to The Adviser, Ms Dimarchos said non-banks are well placed to absorb some of the big four’s market share having escaped from the GFC relatively unscathed.
When the GFC hit, customers flocked to the perceived safety of the big four.
But despite customer concern, the non-bank sector did not collapse under the financial crisis and are now “stronger than ever and ready for action”, Ms Dimarchos said.
“Customers and brokers are savvy. They can see that the non-bank sector easily weathered the storm and, as such, will be only too happy to put their business with these lenders,” she said.
But Ms Dimarchos said the non-bank sector should not rely on word of mouth and positive referrals to generate business.
“The non-bank sector should band together and go out to the media as a whole. We need to stand united. As a group, we have a greater chance of taking on the majors.”
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