NONBANK FINANCIAL INSTITUTIONS – AUSTRALIA

Boost for IPO market as Fahour’s Latitude soars on debut

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Original article by Joyce Moullakis
The Australian – Page: 13 & 17 : 21-Apr-21

Shares in non-bank lender Latitude Financial closed at $2.70 on 20 April, four per cent above the stock’s listing price of $2.60. Latitude reached an intra-day high of $2.99, and the stock finished its first day of trading with a market capitalisation of about $2.7bn. Latitude’s successful sharemarket debut after several failed attempts in the past is likely to bolster the IPO market; indeed, a number of rival non-bank lenders are considering a sharemarket float, including SocietyOne and Pepper Australia.

CORPORATES
LATITUDE FINANCIAL SERVICES GROUP LIMITED – ASX LFS, SOCIETYONE AUSTRALIA PTY LTD, PEPPER AUSTRALIA PTY LTD

Third IPO tilt values Latitude at $2.6bn

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Original article by Cliona O’Dowd, Jared Lynch
The Australian – Page: 13 & 19 : 1-Apr-21

Latitude Financial is seeking to raise $200m via an IPO; the non-bank lender and ‘buy now, pay later’ provider is slated to list on the Australian sharemarket in the week beginning 19 April. The IPO will be open to institutional investors, Latitude employees and broking firms. Latitude has made two previous attempts to list on the sharemarket; it shelved an IPO worth $1bn in 2019 due to lack of sufficient interest from investors.

CORPORATES
LATITUDE FINANCIAL GROUP LIMITED

Non-banks clamp down on new loans

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Original article by Joyce Moullakis
The Australian – Page: 13 & 14 : 6-Apr-20

Non-bank lender Pepper Australia has increased its home loan interest rates and tightened its credit criteria as it assesses the impact of the coronavirus on its operations. Pepper will stop offering construction loans and will require a bigger deposit for commercial loans, while larger deposits will also be needed for its two types of home loans. Fellow non-bank lender Bluestone has also introduced new credit criteria as well as increasing the rates on all of its loan products by 35 basis points.

CORPORATES
PEPPER AUSTRALIA PTY LTD, BLUESTONE GROUP PTY LTD

Big four lending at record low as competition bites

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Original article by Duncan Hughes
The Australian Financial Review – Page: 3 : 6-Aug-19

Analysis by Morgan Stanley suggests that smaller Australian banks and non-authorised deposit-taking institutions are enjoying stronger growth in mortgage lending than the nation’s four largest banks. The ‘big four’ are attempting to counter this by offering incentives and aggressively reducing their interest rates, but some of the smaller lenders are matching these offers. Meanwhile, data from Australian Finance Group shows that the market share of non-bank lenders rose to a record 42 per cent in the June quarter.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, AUSTRALIAN FINANCE GROUP LIMITED – ASX AFG, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, ME BANK, BENDIGO BANK, CANSTAR PTY LTD, THINKTANK, THE BLACKSTONE GROUP LP, LA TROBE FINANCIAL PTY LTD

Big banks miss out as nimble lenders pounce

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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

Labor credit report delay will entrench banks: Fintechs

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Original article by James Eyers
The Australian Financial Review – Page: 17 : 15-Jun-18

The CEOs of five financial technology lenders have urged shadow treasurer Chris Bowen to reconsider Labor’s push for a key part of the comprehensive credit reporting regime to be delayed for 12 months. The CCR regulations are slated to take effect on 1 July, but Labor has advocated deferring the reporting of repayment history information for a year. The CEOs of SocietyOne, RateSetter, MoneyPlace, Harmoney and WISR have warned that such a delay will allow the major banks to retain their competitive advantage.

CORPORATES
AUSTRALIAN LABOR PARTY, SOCIETYONE AUSTRALIA PTY LTD, RATESETTER AUSTRALIA PTY LTD, MONEYPLACE PTY LTD, HARMONEY LIMITED, WISR LIMITED – ASX WZR

Prospa float postponed by ASIC probe

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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

Lenders see sanity return to home loans

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Original article by Michael Bennet
The Australian – Page: 15 & 18 : 19-Dec-16

Bendigo & Adelaide Bank CEO Mike Hirst notes that Australia’s four major banks are offering smaller discounts on mortgage interest rates than in the first half of 2016. He adds that the banks would have struggled to achieve a good return on these loans given the size of some discounts. Credit Union Australia CEO Rob Goudswaard expects a rise in mortgage interest rates after a period of intense competition. He also does anticipate a rise in the cash rate in 2017.

CORPORATES
BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, CREDIT UNION AUSTRALIA LIMITED, BANK OF QUEENSLAND LIMITED – ASX BOQ, LIBERTY FINANCIAL PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD, CREDIT SUISSE (AUSTRALIA) LIMITED, DIGITAL FINANCE ANALYTICS, DEUTSCHE BANK AG

Old lenders losing battle for hearts and minds

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Original article by Michael Bennet
The Australian – Page: 23 : 22-Sep-16

The 2016 global consumer banking survey of professional services firm Ernst & Young shows that just 21 per cent of Australians completely trust that they will receive unbiased advice from their bank. The survey also found that 36 per cent of bank customers have complete trust in their financial institution, compared with 44 per cent of non-bank customers. Meanwhile, 37 per cent of Australian respondents do not consider the products of rival financial providers to be significantly different.

CORPORATES
ERNST AND YOUNG, PRICEWATERHOUSECOOPERS, MACQUARIE GROUP LIMITED – ASX MQG

Small lenders likely to follow majors up

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Original article by Shaun Drummond
The Australian Financial Review – Page: 17 : 16-Oct-15

Australia’s other three major banks have not yet increased their home loan interest rates in response to Westpac’s move. Bendigo & Adelaide Bank CEO Mike Hirst has indicated that the regional bank may increase its mortgage rates if the other "big three" do so, while Suncorp Bank, CUA and Firstmac may do so as well. Suncorp reduced its interest rates on some home loans on the same day that Westpac announced its rate increase.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, SUNCORP BANK, SUNCORP GROUP LIMITED – ASX SUN, CREDIT UNION AUSTRALIA LIMITED, FIRSTMAC LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA