Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter

New entrant threat ‘incremental and progressive’

Credit specialist La Trobe Financial expects Australian lenders to meet the threat of new digital entrants head-on.

Speaking to Mortgage Business, La Trobe Financial chief investment officer Paul Wells said the inevitability of new entrants will progressively bring significant potential change to the financial services landscape.

“Well known Australian and ‘next generation’ global brands, with balance sheets, marketing budget and disruptive technology, are being taken very seriously by the banks,” Mr Wells said.

Advertisement
Advertisement

“The banks will meet this head-on and given retail Australia's sticky core banking preferences and our prudential framework, change specifically to new providers of retail services, may well be only incremental and progressive,” he said.

“The banks have extended their strategic position over the last 15 years and they will act and respond vigorously.”

Mr Wells said that certain pockets of financial services may experience dramatic change where groups of consumers find a strongly preferred model.

“The clearest outcome appears to be ongoing change and wins for consumers in terms of technology, ease, choice and ultimately in value for money in use of financial services; much like what happened so dramatically to borrower rates on mortgages with the entrance of brokers and prime non-bank lenders in the mid-1990s,” he said.

New entrant threat ‘incremental and progressive’
mortgagebusiness

Latest News

Mortgage protection provider ALI Group has welcomed CBA’s new Compassionate Care insurance initiative, but warned the scheme’s cover is ...

A credit squeeze and tighter lending standards in 2019 led to the sharpest contraction in home building since the introduction of goods and ...

The neobank has announced that it is partnering with the Cotton On Group to encourage staff and customers to participate in a savings challe...

FROM THE WEB
podcast

LATEST PODCAST: ASIC releases draft best interests duty guidance

Do you think Australia will move to quantitative easing this year?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.