Southern Cross enjoys strong year
The company’s total value of loans under arrangement grew 24.8% in the year to date, as growth in investor funds rose 19.9%.
The volumes indicate more Kiwis are willing to invest in P2P lending, and more customers are turning to the product, despite their typically higher interest rates.
Jackson predicts non-bank lenders will finance building growth in Auckland as banks tighten up. He said: “The banks run auto decisioning for their property lending, so if you don't tick all the boxes you don’t even get off the starting block. The non-bank lenders like ourselves are still ‘human’ centric in our decision making.”
He believes non-bank lenders can help address Auckland's housing shortage: “It’s more important now that we get the investment because without an adequate money supply, growth and development slows down. In a city that needs 13,000 houses a year to keep up – but only 7,000 are being built annually – lack of funding will only make the housing crisis worse.”
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