Neo Lenders lead the market with technology

September 12, 2018

Neo Lenders will lead the way and use new technology across the life cycle of a mortgage to provide home loans that comply with responsible lending while also providing a superior service, writes Graham Andersen chief executive of Australian Mortgage Marketplace.  Australia’s non-bank lenders have been an important part of the Australian prime mortgage markets for…

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Context-driven financial literacy key to responsible borrowing – Mortgage Business

August 30, 2018

AMM will embrace meaningful responsible lending to ensure that borrowers obtain the right loan at the right time. Here’s an article from Mortgage Business in which AMM COO Kym Dalton explains the shift in delivery of financial education to borrowers. Responsible borrowing and spending need to be facilitated through context-driven financial literacy, according to the…

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To be, or not to be, a bank?

To be, or not to be, a bank?

July 31, 2018

Written by Graham Andersen,  Chief Executive, Australian Mortgage Marketplace. Australia has gone through a long period where no new mortgage funders of any significance, either banks or non-banks, were created but we are now seeing a new era of neo-lenders and challenger banks appearing on the scene. Since 2007 the financial system has heavily favoured…

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‘We’re not competing with the non-banks’: AMM

July 30, 2018

This article originally appeared on Mortgage Business on 30/7/18. The co-founder of neo-lender Australian Mortgage Marketplace has outlined where the group sits in the new order of APRA and ASIC-regulated mortgage providers. Becoming an APRA-regulated neo-bank is a considerable undertaking and an expensive exercise. A handful of new players are choosing this path, such as…

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Small and mighty: Meet the challenger banks nipping at the heels of the big four

July 20, 2018

This article originally appeared on Smart Company on 19/7/18, written by Stephanie Palmer-Derrien. A slew of challenger banks are poised to burst onto the Australian finance scene, in a bid to take on the big four, and change the way that Aussies think about banking. Typically offering cloud-based banking services without a bricks-and-mortar branch in sight,…

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Putting APRA’s Stress Test to the Test.

July 11, 2018

This article originally appeared on LF Economics on 12/7/2018. So yesterday APRA came out and said that if unemployment rose to 11%, House prices fell by 35%, and the Chinese economy tanked, that the Australian banking system would be able to withstand the economic stresses associated with this type of economic destruction.   So let’s…

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Why aren’t we using superannuation to fund mortgages?

July 9, 2018

This article originally appeared on Mortgage Business on 9/7/18. It seems like a logical idea. Superannuation funds need a fixed-income asset to invest in. Lenders need domestic funding. Super, meet mortgages. But Australia’s $2.6 trillion superannuation market is still unwilling to fund home loans. This is not a new argument — people have been debating the…

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Digital Finance Analytics: Mortgage Stress Continues To Claw Higher

July 5, 2018

Digital Finance Analytics (DFA) has released the June 2018 mortgage stress and default analysis update. The latest RBA data on household debt to income to March reached a new high of 190.1 [1] … … so no surprise to see mortgage stress continuing to rise. Across Australia, more than 970,000 households are estimated to be…

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As credit tightens, gluttonous Aussie banks binge on offshore debt

July 4, 2018

This article originally appeared on MacroBusiness on 4/7/18. The Australian Bureau of Statistics (ABS) last week released its National Financial Accounts for the March quarter, which revealed a large 4.8% quarterly rise in Australian banks’ gross external liabilities (offshore borrowings), and a significant 9.8% increase over the year. Bonds (+$24 billion) and One Name Paper (+$12 billion)…

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Credit Suisse: Aussie credit crunch intensifying

June 26, 2018

This article is written by Damien Boey of Credit Suisse. Duration of the credit crunch Yesterday, we published an article explaining why we think that credit tightening will be deeper for longer (attached). Our argument is as follows: 1.    1Q APRA data and credit spreads point to a 10-20% drop in loan approvals in the next…

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