By:
Steven Degetto
Chief commercial officer, Alex.Bank
If residential mortgages are a broker’s bread and butter, personal loans are the condiments that can add some much-needed variety to their book.
Whether a borrower is looking for finance to buy a vehicle, renovate their kitchen or consolidate debt, personal lending provides brokers with another way to support clients while adding greater diversity to their lending proposition.
Speaking to The Adviser, Steven Degetto, chief commercial officer of personal loans and consumer asset finance specialist Alex.Bank, says the lender is seeing demand from a broad mix of profiles.
“Demand for personal lending continues to be strong, although we’re seeing borrowers become much more deliberate in how they use credit,” he says.
“Cost-of-living pressures remain a factor, but we’re also seeing customers use personal loans to fund planned purchases such as vehicles, home improvements and debt consolidation, rather than simply relying on additional mortgage debt.”
The latest lending indicators data release from the Australian Bureau of Statistics (ABS) supports this assertion, with personal fixed-term loan commitments reaching $9.7 billion in trend terms during the three months to 30 June 2026, up 7.1 per cent on the same time last year.
In terms of the makeup of this demand, commitments for road vehicle loans fell 5.0 per cent year-on-year to $4.7 billion, but this was more than offset by commitments in the broader ‘other’ category – which includes personal investment, travel and holidays, other vehicles and household goods – which surged 21.6 per cent over the same period to $5.0 billion. For Degetto, the figures highlight the opportunity personal lending presents to brokers, particularly those with an existing base of home loan clients.
“Many home loan customers automatically assume they’ll need to increase their mortgage every time they want to buy a car, renovate their home or consolidate debt. In reality, that’s not always the most appropriate solution,” he says.
“Increasing a home loan can take longer and, importantly, often means repaying that additional borrowing over a 25 or 30-year mortgage term.
“For many clients, financing a vehicle or home improvement over a five to seven-year personal loan may make far more financial sense. They’re matching the repayment term to the life of the asset and, in many cases, reducing the total interest paid over the life of the borrowing.
“It’s about helping customers understand they have options.”
We’re seeing real growth in brokers embracing personal lending. As customer needs become more diverse and scenarios more complex, personal loans are becoming an increasingly important part of the broker proposition.
— Steven Degetto, Chief commercial officer, Alex.Bank
So, what’s the best way for brokers to make the most of this opportunity in personal lending?
Degetto says the first step is shifting their mindset and recognising that personal lending is not simply a smaller version of a mortgage, but a fundamentally different conversation.
He also notes that personal lending borrowers are looking for certainty, speed and a straightforward experience, rather than simply access to credit – the thinking behind the lender’s new streamlined income verification process.
“Being able to assess certain borrowers’ income using payslips only has genuinely changed the experience for many brokers. It removes unnecessary friction, reduces turnaround times and allows brokers to deliver quicker outcomes for their clients,” he adds.
“Ultimately, brokers are bringing us customers who value competitive pricing, fast decisions and an efficient lending experience – and that’s exactly where we’re focused.”
Degetto says brokers who excel most in this space tend to be those who understand the nuances of these loans and what’s important to borrowers.
“Personal lending is often about speed, understanding the customer’s immediate objective and recommending the right solution for their circumstances,” he says.
“Like any financial product, success comes from understanding the product, understanding your lender and matching the right customer with the right solution.”
He also notes that more and more mortgage brokers are recognising that personal lending is a natural extension of the advice they already provide.
“A great broker doesn’t simply arrange finance – they solve problems,” he adds.
“When the recommendation genuinely aligns with the customer’s needs and objectives, everyone wins.”
In response, the personal lender has made a concerted effort to meet growing demand.
“Over the past six months we’ve welcomed more than 1,000 additional accredited brokers as we’ve continued investing in our broker proposition, expanded our distribution team and introduced initiatives that make it easier for brokers to do business,” he adds.
That shift is reflected in the feedback Alex.Bank has received from brokers.
Joe Kearns, director at Melbourne-based brokerage National Loans, called out the introduction of a streamlined assessment process as a “welcome enhancement”.
“Alex.Bank continues to demonstrate a willingness to listen to broker feedback and introduce practical enhancements that improve the customer journey,” he says.
“The streamlined homeowner assessment process helps simplify the application experience for eligible customers by reducing unnecessary complexity, while enabling brokers to deliver outcomes more efficiently and provide a faster, smoother experience for their clients.”
Meanwhile, Bianca Saccaro, head of sales at asset finance aggregator Fintelligence, says Alex. Bank’s investment in brokers and customers was helping drive strong momentum.
“Alex.Bank has built a reputation for being responsive, easy to deal with and committed to continuous improvement,” she says.
“The enhancements introduced throughout 2026 reflect a genuine focus on helping brokers deliver better outcomes for their customers, and we look forward to supporting the bank’s continued growth.”
For Degetto, this focus on reducing friction is particularly important.
“In personal lending, time matters. Customers are often making decisions around vehicles, renovations or consolidating debt, so providing a quick, predictable outcome makes a significant difference,” he says.
He says the lender is also continuing to focus on making the broker experience as straightforward as possible as it expands its presence in the channel.
“We’ve been very deliberate about where we choose to compete,” Degetto says.
“Rather than trying to be everything to everyone, we’re focused on delivering an outstanding experience for quality borrowers through fast assessment, straightforward processes and competitive products.”
The chief commercial officer adds that the next phase will be about building on that foundation and continuing to strengthen the personal lender’s proposition for brokers, providing them with an opportunity to broaden their client offering.
And while residential mortgages are unlikely to be knocked off the top spot as a broker’s bread and butter any time soon, personal lending will continue to provide more variety to the mix.
“The best brokers don’t just arrange home loans – they become trusted advisers across their clients’ broader financial needs,” he says.
“For Alex.Bank, this is only the beginning. We’ve built strong momentum during 2026, we’re continuing to invest heavily in our broker proposition, and we’re excited about what the next six to twelve months will bring.”
We’re seeing real growth in brokers embracing personal lending. As customer needs become more diverse and scenarios more complex, personal loans are becoming an increasingly important part of the broker proposition.
— Steven Degetto, Chief commercial officer, Alex.Bank
Steven Degetto
Chief commercial officer, Alex.Bank
Alex.Bank
Alex.Bank is a 100% digital Australian challenger bank focused on providing Australians with a fairer approach to their banking needs.
Its products are designed with customers’ needs and online security in mind, with a focus on simplicity, security and ease of use. As a fully digital bank, Alex.Bank operates without the overheads associated with physical branches, allowing it to pass on these savings to customers through competitive rates and fewer unnecessary fees.
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