The rise of non-banks

The rise of non-banks

Non-bank lending reached an 11-year high in September 2018, and the share of broker originated loans with non-majors and their affiliates increased by almost 3% in the January to March quarter.

Capitalising on the trend private equity firms from across the world are now looking for a foot in the door, with a number of major acquisition deals confirmed since 2017: KKR took over Pepper Money; Blackstone became a majority stakeholder in La Trobe Financial; and Cerberus Capital Management acquired Bluestone.

Royden D’Vaz, head of sales and marketing at Bluestone APAC, says, “This acquisition enabled us to pursue aggressive growth targets via mass rate cuts and strategic growth across all our teams.

“Coupled with external market conditions, which currently favour non-banks, in 2018 we saw the value of our applications increase by 54%, with total settlements value increasing by 51%, representing a 39% increase in our number of completed settlements,” he says.

Meanwhile, in the last financial year, Liberty saw its total assets rise to more than $10bn, up 35% increase year-on-year.


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Source: 12 trends of Christmas: The rise of non-banks