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Big bank alternatives gather pace
Australia’s second tier lenders are gaining ground on Australia’s majors.
According to Stargate’s Product Review index,which measures loan volumes lodged through mortgage brokers, the majors' loan volumes dropped by approximately 20 per cent in January.
Stargate’s director of operations Scott Spencer said the story was somewhat different for the second tier lenders, who had managed to go from strength to strength in recent weeks.
According to Mr Spencer, consumers were starting to show their dissatisfaction towards the majors with their feet.
“All of the majors experienced a drop in volumes over the month of January,” Mr Spencer said.
“Meanwhile Bankwest’s volumes increased, allowing the lender to take second position in our Product Review Index.
"As far as the majors are concerned, I believe the drop in volumes is a flow-on effect from their out of cycle rate hikes late last year.”
However, the news wasn’t all bad for the big four.
Mr Spencer said CBA managed to retain top position on the software provider’s Popularity Index despite suffering a drop in volumes.
