Jessica Darnbrough
The non-bank sector will have to carve out their own niche in the market if they are to grow their market share, one industry figurehead has claimed.
Speaking to The Adviser, Pepper Home Loans’ managing director Patrick Tuttle said while there will always be a place for the non-bank sector, these lenders really need to target specific demographics if they want to grab a greater share of the pie.
“We cannot go up against the major banks and win on price alone. We have to look at segments where we can achieve competitive cost of funding and offer credible products,” he said.
“While there are indications to suggest the securitisation market is opening up once again, it will be a long time before we can truly compete on price with the majors, especially with the current price war.”
Australia’s non-banks lenders have seen their market share slip from approximately 20 per cent before the Global Financial Crisis, to just 3 per cent today – according to data from the Australian Bureau of Statistics.
