Loans double at non-banks as majors slide

Original article by Aleks Vickovich
The Australian Financial Review – Page: 18 : 12-Nov-19

Australia’s four major banks and their subsidiaries experienced a 10 per cent fall in market share in business lending and equipment finance in 2018-19, according to the inaugural business lending index report, put together by mortgage aggregator FAST. FAST Group CEO Brendan Wright says the ability of the major banks to service the demands of business customers is being hampered by distractions and regulatory hurdles, and that non-bank players are taking advantage of this situation.

CORPORATES
FAST GROUP, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Treasurer’s push to ease SME squeeze

Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 9 : 1-Nov-19

The federal government will seek to make it easier for small and medium enterprises to access credit by urging banks to waive responsible lending standards for the sector. Treasurer Josh Frydenberg notes that the distinction between a small business loan and a personal loan is often a grey area, given that small business owners often use their family home as security when taking out a loan. Council of Small Business of Australia CEO Peter Strong says banks often advise small business owners to take out a personal loan instead, as they are cheaper and less complicated.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Stockmarket boosted as Prospa prospers on debut

Original article by Joyce Moullakis
The Australian – Page: 21 : 12-Jun-19

Prospa Group’s joint CEO Beau Bertoli is upbeat about the outlook for the small business lending market, despite the slowing Australian economy. The fintech specialises in loans of between $5,000 and $300,000, and Bertoli say there is a lot of unmet demand for small business loans. Prospa’s shares peaked at $4.55 on the stock’s first day of trading on 11 June, having been issued at $3.78. Prospa has forecast a pro-forma net loss of $1.5m for fiscal 2019.

CORPORATES
PROSPA GROUP LIMITED – ASX PGL, REFINITIV, QUALITAS REAL ESTATE INCOME FUND – ASX QRI, LIFE360 INCORPORATED – ASX 360

Digitised lending ‘in a decade’: NAB

Original article by Richard Gluyas
The Australian – Page: 19 : 13-May-19

Business banking contributes almost 50 per cent of National Australia Bank’s cash earnings. Anthony Healy, the head of NAB’s business banking division, forecasts that approvals for loans to small and medium enterprises will have been fully digitised within 10 years. He notes that platforms such as Quickbiz already allows NAB to do this. Healy has downplayed speculation that he is among the leading internal candidates to permanently replace Andrew Thorburn as CEO.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, JUDO BANK PTY LTD

Big banks miss out as nimble lenders pounce

Original article by James Frost
The Australian Financial Review – Page: 17 : 2-Apr-19

Specialised lenders such as Scottish Pacific say their customer base is increasing due to the stricter lending standards of the major banks. Scottish Pacific CEO Peter Langham notes that many of the firm’s small business customers would traditionally have secured funding against property from a major bank. Prospa’s co-founder Beau Bertoli agrees that small businesses are finding it harder to secure financing from big banks, noting that they are scrutinising loan applications more carefully.

CORPORATES
SCOTTISH PACIFIC GROUP LIMITED – ASX SCO, PROSPA GROUP LIMITED, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN, JUDO CAPITAL PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Banks pledge to lend but with caveats

Original article by James Eyers
The Australian Financial Review – Page: 17 : 12-Nov-18

Australia’s major banks have urged the financial services royal commission not to over-regulate the way in which they assess corporate borrowers. The banks state that this would make it harder to increase their lending to small and medium enterprises. Their urgings have come as federal Treasurer Josh Frydenberg called upon the banks to "keep open the books", while National Australia Bank executive Anthony Healy says the bank is more willing to lend to SMEs without proper security.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA. DEPT OF THE TREASURY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC

Westpac to quit SMSF lending

Original article by Duncan Hughes, Joanna Mather
The Australian Financial Review – Page: 6 : 17-Jul-18

Westpac will cease offering new loans to self-managed superannuation funds that wish to invest in property at the end of July. Chris Balalovski of BDO notes that there does not seem to be any problems with losses in the SMSF sector as regards property, and that Westpac’s decision could be more to do with negative regulatory or consumer sentiment towards loans to SMSFs. Jordan George from the SMSF Association says it is his understanding that the Commonwealth Bank and Macquarie still provide loans to SMSFs, but that the National Australia Bank and the ANZ Bank do not lend to the sector.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, BDO AUSTRALIA LIMITED, SMSF ASSOCIATION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MACQUARIE GROUP LIMITED – ASX MQG, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, BANK OF MELBOURNE LIMITED, ST GEORGE BANK LIMITED, BANK OF SOUTH AUSTRALIA LIMITED

Big four return fire on business lending

Original article by James Frost, James Eyers
The Australian Financial Review – Page: 3 : 13-Jun-18

Australia’s major banks have used submissions to the banking royal commission’s third round of hearings to refute suggestions that they had engaged in serious misconduct. Some of the banks acknowledged that they had breached the code of banking practice with regard to small business lending, but they maintained that such transgressions were relatively minor and did not constitute a breach of the law.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, FINANCIAL OMBUDSMAN SERVICE LIMITED, PIE FACE PTY LTD

Westpac ends referral deal with Prospa

Original article by James Eyers
The Australian Financial Review – Page: 15 & 28 : 12-Jun-18

Westpac has terminated a referral arrangement with fintech Prospa that it established in 2015. The arrangement saw Westpac refer customers that did not meet its lending criteria to Prospa; it is understood that not many referrals had been made under the agreement. The ending of the agreement is seen as being prompted by Westpac’s desire to increase the amount of unsecured loans it makes to small businesses, and comes after Prospa postponed plans to list on the Australian sharemarket.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, PROSPA GROUP LIMITED ASX PGL, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MYOB GROUP LIMITED – ASX MYO, LIBERTY FINANCE PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, FINTECH AUSTRALIA PTY LTD, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN

Prospa float postponed by ASIC probe

Original article by James Eyers
The Australian Financial Review – Page: 13 & 16 : 7-Jun-18

Fintech company Prospa Group was slated to make its sharemarket debut on 6 June, but the listing has been delayed for 48 hours. Prospa has advised that the Australian Securities & Investments Commission has raised concerns about some aspects of its business loans contracts. The average annual interest rate of Prospa’s loans is 41 per cent, which has been criticised by Council of Small Business of Australia CEO Peter Strong. Prospa anticipates a default ratio of about one in every 20 customers.

CORPORATES
PROSPA GROUP LIMITED – ASX PGL, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, MACQUARIE CAPITAL PTY LTD, UBS HOLDINGS PTY LTD, FIELD RESEARCH PTY LTD, FINTECH AUSTRALIA PTY LTD, AUSTRALIAN FINANCE INDUSTRY ASSOCIATION LIMITED, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN, SUNCORP GROUP LIMITED – ASX SUN, AUSTRALIAN BANKERS’ ASSOCIATION