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Jessica Darnbrough
The decision by two of the majors to raise out of cycle with the RBA will open up business opportunities for the non-bank sector.
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Speaking to The Adviser yesterday, Advantedge’s general manager, lending – distribution Brett Halliwell said the non-bank sector could use the RBA’s rate hike to position themselves as a true competitor in the market.
According to Mr Halliwell, Australians are becoming increasingly fed up with the major banks and are now, more than ever, on the lookout for a competitive alternative.
“There has been a lot of publicity about the rate hikes of the majors and what that has done is helped consumers understand that there are other options out there,” Mr Halliwell said.
“I think that is a great opportunity for mortgage managers, while consumers are happy to look at their choices, to create a competitive product suite.”
According to Mr Halliwell, if mortgage managers could increase their competitive position in the industry they would be well placed to claw extra market share, as brokers are only too happy to offer non-bank products.
“Brokers have long had a strong affinity with the non-bank sector. So if and when the sector becomes competitive in pricing, they can expect to see their market share grow,” he said.
In The Adviser’s latest quarterly sentiment survey, more than 80 per cent of brokers said they would recommend non-bank products to their clients over the coming quarter – up 6.5 per cent on this time last year.
