A non-bank lender has remarked that the industry has barely changed since the GFC and is not moving fast enough to drive competition.
Speaking to Mortgage Business, Mortgage Ezy chief executive Peter James said the biggest shock has been the lack of new blood in the third-party channel.
“Basically we are dealing with exactly the same people,” Mr James said.
“Unfortunately, it is kind of an industry that isn’t moving quickly,” he said, adding that this is particularly the case for the third-party channel, but is also true for the broader mortgage market.
Noting a significant decline in competition since the financial crises, Mr James said it is not just the non-banks that have been sidelined.
“The building societies and credit unions that Wayne Swan talked about competing really, even by their own admission, are not up for it,” he said.
“Their systems and culture just does not do well for head-on competition against the banks.”
With the majority of the mid-tier banks like St George and BankWest now owned by the majors, Mr James sees littler hope for the non-majors.
“Going forward, the regionals and non-majors are going to be placed more at a disadvantage in terms of pricing,” he said.
However, Mr James noted that Bendigo and Adelaide, while not competitive now, will be gaining market share in the future given its progress with IRB accreditation.