Non-bank lender experience good growth

John Kensington

In its latest Non-Bank Financial Institutions Performance Survey (FIPS), KPMG says finance companies and credit unions experienced a year of strong growth that was driven by increased consumer confidence and fuelled by house price growth, strong employment and low interest rates. In addition to a 17.4% rise in total assets, to $11.01 billion, after tax net profits rose by 8.17% to $207.78 million.

Noting the significant changes that have taken place within the personal/consumer lending space since P2P lenders entered the market, KPMG says that survey participants are taking a proactive approach in response to the threat by developing sophisticated Fintech capabilities of their own.

However before an entity embarks on a Fintech campaign, KPMG’s Head of Banking and Finance, John Kensington, says it is crucial that non-banks properly consider whether the implementation would complement existing service/product offerings and support the sale of more business, or whether it would replace it. In that regard, a judgement needs to be made about whether to 'turn off' the old model and rely solely on the new model for doing business.

In the future, KPMG says companies that have yet to embrace data analytics "might find themselves lagging behind, or even out of business, as they struggle to keep up with competitors."