Borrowers increasingly looking to non-banks

According to recent research by RFi, consumers are becoming increasingly dissatisfied with Australia’s major lenders and are ready to turn to alternative institutions.

RFi director Alan Shields said consumer dissatisfaction towards the big four can be largely attributed to the lenders’ decision to move above and beyond the RBA last November. Mr Shields said the research showed consumers are increasingly selecting one of Australia’s non-majors as their lender of choice.

“We poll consumers every quarter to see who their first lender preference would be. Increasingly consumers are showing that their first preference would be a non-major,” Mr Shields said.

“Consumers comfort level in borrowing from a non-bank increased dramatically in the last quarter of 2010 from where it was two years prior.”

Source: The Advisor