Login
ISCOVER
Jessica Darnbrough
Despite recent data that suggests non-banks continue to lose market share to the majors, one industry figurehead remains bullish about the future of the sector.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
Speaking to The Adviser, Yellow Brick Road’s chairman Mark Bouris said non-banks have the opportunity and the ability to grow their mortgage market share considerably over the coming years.
“Consumers are growing increasingly dissatisfied with the majors,” he said.
“In addition, there are certain consumers out there that are young and have no affiliation with the lenders. These younger borrowers are a prime target for non-bank lenders.”
"Over the next 10 years, the 20 per cent of consumers that want an alternative to the majors will become 40 per cent. They won't come to you if you are not effective. But this is Australia where everyone gets a shot."
Mr Bouris said provided non-banks target consumers that are looking for alternative to the majors, there is no reason why they shouldn't be able to see their share grow back to pre-GFC levels.
Moreover, he said recent data from the Australian Bureau of Statistics which found non-banks have seen their market share fall to just above 1 per cent in recent months, should not be taken as gospel.
“First of all, that data does not take into account the market share held by mortgage managers. In fact, the stats that the ABS issue are counted at the ‘wholesale funder’ level,” he said.
