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Major banks suffer market share slide

by Staff Reporter6 minute read
The Adviser

Jessica Darnbrough & Vivienne Kelly

The big banks are losing their grip on volumes via the third party distribution channel, new data has revealed.

According to AFG’s latest Mortgage Index, Australia’s non-majors managed to grow their market share to 24 per cent in September – significantly higher than the 18 per cent recorded this time last year.

While strongest among first home buyers, where they comprise over 1 in 4 new home loans, non majors also grew market share among investors and borrowers seeking to refinance.

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Speaking about the results, AFG’s general manager sales and operations Mark Hewitt told The Adviser that he was optimistic the non-majors could grow this share further still in the coming months.

“We’d like to see it get to the stage where the non-major banks get 30 per cent of our loans,” Mr Hewitt said.

“The strengths of our major banks are a large part of the reason we didn’t suffer during the GFC. They kept our economy ticking over. But we do need a competitive market, and the non-majors are vital for continuing competition.”

Mr Hewitt’s aspiration to have Australia’s non-majors accounting for 30 per cent of all loans written by the aggregator could come to fruition sooner rather than later if The Adviser’s recent Third Party Banking Report: Non-Major Lenders is any indication.

According to the report, Australia’s non-majors have significantly improved their broker proposition over the last 12 months, with five of the eight lenders ranked improving their overall broker perception score.

Moreover, the non-majors are now beating the big four in a number of key business areas including channel conflict and client support.

In every other key business area, the non-majors' broker perception scores were on par with the big four.

 

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