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.

“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.”

Advertisement
Advertisement

PROMOTED CONTENT


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

Citi is to exit its consumer business, including mortgages, loans, retail banking and credit card operations, in Australia and 12 other ...

The major bank’s CEO has reiterated that responsible lending changes could simplify the lender’s processes and improve mortgage approv...

The non-major has reported growth in housing lending as well as a rise in home loan settlements via the broker channel. ...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: Tackling the home deposit challenge

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

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