Fintech lenders should band together to break the big 4 monopoly: loans.com.au
Leading Australian online lender loans.com.au has called on Fintech Lenders to put aside their differences and work together to beat the Big Four banks.
Managing Director Marie Mortimer said the recent public exchange between Tic:Toc and 86 400 over whether direct digital lending was “solved” was an example of how challengers in the space can get distracted by each other instead of focusing on the banking oligopoly.
“In this business it is always easy to look at the latest highly-publicised start-up, and see them as our competition even though they have no market share yet,” Ms Mortimer said.
“After eight years of rapid growth one thing we have learned is to never forget that our real competitors are the four massive banks who take nine out of every 10 home loan customers, year after year, not the new entrants.”
Ms Mortimer said she welcomed each new company that entered the Fintech space because they helped to open the minds of consumers to dealing with an online lender like loans.com.au.
“We are much stronger when we work together to validate each other in the minds of potential customers as a real alternative to the big 4 while at the same time creating credible competition,” Ms Mortimer said.
“loans.com.au welcomes all new lenders and neobanks entering the online space as we all have one shared goal – breaking down the monopoly held by the major banks in Australia.”
Since it was launched in 2011, loans.com.au has grown from zero in loans to $6 billion in loans under management, with customers in every state and territory.
Ms Mortimer said that each new fintech had something innovative to offer in the fight to create market competition.
“What is fantastic about online fintech lenders is that we all have our own technology and IP that is unique to us,” Ms Mortimer said.
“Our digital offerings, while appearing to be the same on the surface, are very different in most cases. There is so much opportunity with the emergence of Fintech and with the current revolution happening in banking and finance, it’s time to break the monopoly and make things better for everyday Australians.”
“Together online lenders are making a big difference as an emerging group to be reckoned with.”
Being one of the original Fintech lenders, loans.com.au has seen how technology and innovation combined with excellent customer service can challenge the status quo when it comes to home lending in Australia.
