Non-bank surge to continue: KPMG
KPMG's latest report shows non-bank net profit hit $44.34 million in the year to September. The profit growth is double the amount seen in the prior year.
The strong financial performance comes as non-banks capitalise on reduced appetite from the major lenders. A host of issues, such as Responsible Lending, the Royal Commission, and Australian regulatory rules have led banks to become more selective over the past year.
John Kensington, head of banking and finance at KPMG, said the change in behaviour had played into the hands of non-banks: "Banks have been cautious in off-risk mode for a long period of time," he said. "People have found there is another available avenue if the banks say no. As a result the non-banks are looking to grow."
The KPMG report covers non-bank activity in personal lending as well as mortgage borrowing. Non-banks have also provided more personal finance. They lent $5.4 billion last year, up from $4.8 billion the year before.
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