“Looking at where we currently stand coming out the other side of the GFC, quite clearly the influence and the ability of the non-bank sector of the industry to compete aggressively has been severely hamstrung, and as you note, primarily through the lack of funding availability to them,” he said.
Competition in the home loan market is being stifled by the lack of wholesale funding available to the smaller, non-bank lenders – the same group who introduced competition in Australia
And for consumers to be able to have real choice away from the Big Four banks, more needs to be done by the Federal Government, according to Aussie’s founder and Executive
It wasn’t the banking sector that brought competition, it wasn’t the mutuals,” he said. “I’m a fan of the mutuals, but to suggest that the mutuals can become the fifth force in banking, quite frankly is a joke.”
“They are small corner stores, they don’t have infrastructure, they don’t have technology, don’t have the clout and reach, and we need the Government to go back to firstly understand where competition came from.”
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