Non-banks are the future of banking

Non-banks are the future of banking

The future of banking is in the hands of non-banks, says specialist lender Liberty.

Non-banks, by nature, are “active, nimble, innovative and relevant”, allowing them to lead the competition, rather than be threatened by big banks.

Non-banks provide a variety of solutions such as home loans, car loans, personal loans and business loans, as well as custom lending for those that need it.

But as the financial world welcomes more and more technology, and increased regulation drives up costs, it leaves many to wonder how non-banks will respond to these changes.

Asked about how non-banks will adapt to the future, group sales manager at Liberty, John Mohnacheff, laughed: “How are banks going to adapt? That’s the question.

“Non-banks have adapted by creating a market for ourselves. It’s the non-banks that lead the way in our industry and it’s the banks that have to follow.

“Innovation will come from the non-banks, so I see a wonderful future, whatever form that takes.

“You’ve also got the emergence of fintechs, which are helping to create cheaper, faster, better ways to enable positive customer transactions. This innovation forces big banks to change the way they operate.

“They realise they’ve got to do it, but the non-banks put the pressure on because we can embrace and deliver it faster. Most non-banks are smaller and more agile. We can react more rapidly.”

 

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