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Consumers swing to second-tier

by Staff Reporter8 minute read
The Adviser

Jessica Darnbrough

While the price war rages between Australia’s majors there are indications that the real winners could be the second-tier lenders.

According to recent research by RFi, consumers are becoming increasingly dissatisfied with Australia’s major lenders and are ready to turn to alternative institutions.

RFi director Alan Shields said consumer dissatisfaction towards the big four can be largely attributed to the lenders’ decision to move above and beyond the RBA last November.

Mr Shields said the research showed consumers are increasingly selecting one of Australia’s non-majors as their lender of choice.

“We poll consumers every quarter to see who their first lender preference would be. Increasingly consumers are showing that their first preference would be a non-major,” Mr Shields toldThe Adviser.

In addition, Mr Shields said satisfaction towards the non-banks had been improving quarter on quarter.

“Consumers comfort level in borrowing from a non-bank increased dramatically in the last quarter of 2010 from where it was two years prior. So I think there are some really interesting things going on at the moment with regard to consumers and their preferences for different lending brands,” he said.

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