Non-bank sector hopeful of a more profitable year

In its first edition of the revamped report, KPMG says even though it was compiled against a rapidly changing global and domestic backdrop, specialist lenders are positioning for sustainable growth through digital capability, customer relationships and targeted product innovation.

Members of the Financial Services Federation (FSF) last year had $22 billion tied up in loans at an average $13,000 loan to 1.5 million clients. This is compared to $20 billion in loans at an average of $10,000 per loan to 1.6 million clients at in 2024.

More than 1.1 million applications were made for loans during the year with a 50% approval rating. 

By far, the biggest trance of lending was to businesses at $10.2 billion, followed by $4.8 billion in vehicle finance, $4.7 billion in unsecured consumer loans, $1.8 billion of mortgage lending and $541 million in secured consumer finance.