Non-banks roundtable 2025: Lenders of first resort

It was another packed room for this year’s Non-Banks Roundtable as nine representatives from the biggest and best challenger lenders gathered at Cafe Sydney to discuss the key mortgage broking topics of 2025.

The stacked roster was hardly a surprise, given the remarkable rise to relevance Australia’s non-bank lenders have enjoyed in recent years. No longer shall they be referred to as the lenders of last resort, the non-banks have proudly proclaimed in recent times. Rather, these alternatives to the traditional banks have cemented their place as a mainstay of Australia’s home lending scene, thanks to innovative product offerings, higher risk appetite and a strong focus on delivering through the broker channel.

Yet there is no shortage of challenges for these non-bank lenders. Competition is rife, brokers and customers are becoming more demanding than ever, market share is seeing swings and roundabouts, and artificial intelligence technology is leading the sector into uncharted waters. But as the conversation flowed around the table, it became clear that these industry leaders are tackling these challenges with gusto.

One of the biggest revelations of the day was just how diverse Australia’s non-bank lenders are. Each has managed to carve out its own identity in a saturated market through innovative product structuring and client-centric adaptability.

Joining MPA for the 2025 Non-Banks Roundtable were:

• Belinda Wright, head of partnerships and distribution, Thinktank (pictured top far left)
• David Smith, chief distribution officer, Liberty (pictured top third from right)
• Royden D’Vaz, general manager, distribution and partnerships, Assetline (pictured top second from left)
• Tony MacRae, chief commercial officer, Bluestone Home Loans (pictured top third from left)
• Cory Bannister, chief lending officer, La Trobe Financial
• Tim Lemon, national sales manager, MA Money (pictured top fourth from right)
• Jason Arnold, group executive, origination, Pallas Capital (pictured top fourth from left)
• Siobhan Williams, head of mortgages, retail broker, Pepper Money (pictured top second from right)
• Tim Ford, head of strategic partnerships, ORDE Financial (pictured top far right)
• Katie Thomas, managing director, Focus Finance – the roundtable’s guest broker (pictured top centre)

What specialist lending segments will you be pursuing with greater intensity in the year ahead?

The sheer diversity of the non-bank lenders gathered around the table was one of the day’s biggest talking points. But there were also some common themes that ran throughout. Bridging finance, for instance, has gained traction across the non-bank sector in recent times, while SMSF lending and non-conforming loans remain cornerstone offerings of the industry.

With Thinktank’s residential business “doing really well”, the group’s focus is shifting back to its commercial finance roots and the SMSF space, especially in light of the proposed government changes to superannuation tax treatment recently becoming clearer.

“We’re rethinking the broker experience in the SMSF and commercial spaces, with a strong focus on speed, simplicity and support so they can spend less time on process and more time helping their clients,” Wright said.

Smith added, “Specialist lending is at the heart of what Liberty does best, and it’s where we shine. We will continue to focus on custom solutions and alt-doc options, as well as look for new ways to do things differently.

“In the year ahead, we’re excited to explore new opportunities in our residential loan offering. We’ll also look to extend our SMSF loan offering to help brokers support even more Australians investing in property to support their future.”

“Brokers are incredibly loyal when you provide competitive pricing, reliable service and genuine support” - Belinda Wright, Thinktank

Assetline, with more than a decade-long track record in short-term private credit, remains committed to its core offering. “That will always be our focus; it’s in our DNA,” said D’Vaz. However, the business has expanded its reach into term facilities and the SMSF space.

Bridging loans are also attracting greater attention. “As it’s getting out a bit more and brokers are starting to embrace it, I’m starting to see that big growth channel,” D’Vaz explained.

He noted that the perception of bridging finance as expensive is changing, especially with more brokers embracing this space.

Thomas concurred with this assessment of bridging finance. “We’ve definitely seen more interest in the bridging sector than probably before. That’s come from confidence in the market,” she said.

Bluestone’s focus remains on non-conforming and near prime lending, with the team recently strengthened to support this direction. It is also launching alt-doc construction and small-ticket commercial offerings, following a successful pilot. “We see a space in the market to offer brokers extra value and flexibility, and we’re keen to play in that space,” MacRae said.

At La Trobe Financial, Bannister sees construction finance as “an enduring tailwind” as it relates to the ongoing housing supply issue. With the government’s house-building targets consistently coming in short, it’s hard to disagree.

MA Money is evolving its alt-doc products with bigger loan amounts and greater risk appetite. The lender is, in Lemon’s words, being “a bit more adventurous” in the space.

“We’ve just launched our commercial offering and our bridging products … The bridging product for us took off quickly, which is surprising, but there seems to be a huge need for it,” added Lemon.

Construction finance remains Pallas’s “bread and butter”, particularly in the mid-tier space. However, Arnold revealed a renewed focus on the $3 million–$10 million low-doc commercial and residential investment segment, with new products in the pipeline in this space. “That’ll be a heavy focus for us,” he said.

Pepper Money is “really doubling down on the real-life segment”, said Williams, referring to near prime and specialist customers as well as the non-standard-income segment. “We think that that sector continues to be largely underserved by banks, creating a great opportunity for non-banks to sort of come in and rescue,” she said. “To complement that, we’re also dialling up the X-factor experience to ensure both brokers and customers get the best experience.”

“Specialist lending is at the heart of what Liberty does best, and it’s where we shine” - David Smith, Liberty

Ford highlighted SME lending as a major focus for ORDE. “There’s a big opportunity and demand in-market to help brokers diversify into supporting SME customers and writing more commercial deals,” he said. “But the real and sometimes-perceived complexity of these deals means there can be a reluctance to pursue them.”

However, ORDE sees SME lending as a crossover opportunity for purely residential writers “that want to dip their toe in the water. So that’s our focus, with a comprehensive, flexible product set and strong support model to help them with their first deal”. Ford also noted growing broker demand for construction and SMSF financing options.

How are you carving out a competitive advantage in today’s hotly contested mortgage finance industry?

In Ford’s view, “your broker experience is where you want to be differentiated in the market as a lender”. He explained, “When we’re in a time where Google reviews can make or break your business, their experience of dealing with you becomes more crucial. Just getting the deal approved isn’t enough any more.”

Ford singled out quick turnaround times, education and consistent and clear decisioning as fundamental to delivering the kind of experience brokers and their clients will remember.

While “sharp price is important and speed to yes is important”, Williams said what truly sets Pepper Money and the non-bank segment apart is flexibility for specialist lending customers. “That outside-the-box approach to past credit history, the way we verify their income, and our flexibility is the heart and soul of Pepper Money,” she said.

“We’re always trying to continue to be innovative from a product, policy and experience lens,” Williams continued, highlighting Pepper Money’s investments in digital tools, including the first-in-market AltDoc Xpress.

Wright acknowledged a “race to the bottom” on rates but argued that consistent service and being able to deliver a result is just as crucial as price. “Competitiveness will always be part of the equation, but the real strength lies in providing a consistently high level of support and service that leads to a positive outcome for brokers and their clients,” she said.

Thinktank’s market-leading white label products are a cornerstone of its service offering. “Our focus is on working hand in hand with our aggregator partners to deliver innovative white label offerings that stand up strongly for them and their brokers,” Wright added.

“I don’t think we’ll ever let AI dominate what we do” - Royden D’Vaz, Assetline Capital

Pallas is investing in local presence to deliver a competitive edge. “Our focus has been getting local boots on the ground, working with local originators to meet with clients and visit the sites to be able to work out complex solutions,” said Arnold. He referenced new offices in Adelaide, Perth and soon Canberra to underscore his point.

MA Money has doubled down on its 48-hour service level agreements (SLAs), investing heavily in technology and its underwriting platform. “We make improvements to it on a monthly basis to ensure that we’ve been able to maintain that,” said Lemon.

The non-bank has rolled out 48-hour SLAs for bridging and commercial deals as well. Consistency is also key.

“We’ve put a lot of work at the front before the loan gets submitted,” Lemon continued. “So we have a dedicated credit person that works with the BDM to ensure that they get that one answer first time.”

Thomas discussed how consistency is a major differentiator in the market, but also a source of disparity. “There’s particular lenders and non-bankers that can maintain a really high level of consistency, especially when you’re dealing with purchases a lot.”

However, she noted that fluctuating SLAs and shifting rates can erode trust. Additionally, there are still a number of non-bank lenders who don’t do fully assessed pre-approvals, making it more difficult to ensure “complex or marginal deals that are time sensitive ... will be processed smoothly, accurately on the lender’s end and efficiently to an approval when it’s time critical”.

D’Vaz was candid about the challenges of differentiation in a commoditised market. “We’re all trying to differentiate, but what we have is a commodity. We all do similar things. We all do things that everybody offers, so we’re always trying to find that edge. Or that secret sauce.”

D’Vaz emphasised that the broker is often in the driver’s seat. “The agenda is run by the broker, because they’re trying to do what’s in the best interests of the customer.” For Assetline, D’Vaz said, the goal is to ensure that brokers “shine in front of the customer”, and to perfect the back-end experience to accommodate a “path of least resistance” to achieve that goal.

Bannister (pictured below) said La Trobe Financial’s edge comes from “making a broker’s life easier for when they think outside of a bank solution”. Whether it’s for a specialist product or a genuine bank alternative on a bank-like product, whether that be a commercial product or a luxury residential development, “we hope they think of La Trobe Financial and know that we have them covered”.

Bannister added that the company’s flexibility gives it an edge when a customer is weighing up going with La Trobe Financial or a traditional bank.

Bluestone’s strategy is to “keep things relatively simple and really focus on two key areas”, said MacRae – specifically, relationship and service. “That involves getting the right people in the right areas, to provide really great service and support for brokers,” he explained.

Providing the best education resources to let brokers know exactly what Bluestone can provide, while simplifying its origination process, is also vital. MacRae continued, “We’ve been working with a mantra of ‘eliminate and simplify’. We’re getting the process tighter, eliminating unnecessary forms, and we’re about to move into the digitisation phase where we’ll remove a whole heap of manual steps from that process. So that’ll further help streamline the broker’s journey.”

Smith noted that as consumer expectations rise, lenders must strive to meet them. “Every day, brokers are lifting their game, and at Liberty we’re right there with them. We know that in a competitive market it’s not just about rates or products; it’s about being a reliable partner.

“To that end, Liberty is investing in our people, particularly our BDMs, who are front and centre when it comes to broker engagement and relationships. By equipping them with the tools they need, we’re ensuring brokers have the support they deserve.”

For Smith, “predictability and reliability are paramount”. Speed matters, but brokers and customers value certainty above all. “We know brokers are under pressure to deliver fast, reliable outcomes, and we’re here to make that easier,” Smith said. “Our goal is to be the lender that brokers can count on for brighter solutions, especially when the clock is ticking or flexibility is required.”

D’Vaz snuck in another comment, as he cautioned against over-reliance on AI, saying, “I think everybody’s expecting this to be the silver bullet for this industry. But we’re a people business. I don’t think that’ll ever change, especially at the non-banks.”

D’Vaz suggested AI is a natural fit for the higher-volume, conveyor belt-like process at the majors, “but we’re a high-touch business. We want to hold the broker’s hand and walk them through the process. We’re helping them manoeuvre the back end. So I don’t think we’ll ever let AI dominate what we do.”

And thus the AI can of worms was opened as the discussion turned to the very pertinent topic of whether AI risks removing the human elements of the lending business.

Some topics cannot be avoided. AI was not on the roundtable agenda, but there’s no skirting around the fact that the technology is having a massive influence on the mortgage finance industry.

While everyone agreed that AI should in no way be a replacement for fundamental human relationships, there was a nuanced discussion around the best practice of implementing it into everyday processes.

“For a business of our scale, Liberty is investing significantly in AI,” said Smith, who sees AI as a powerful tool for streamlining processes and enhancing engagement.

Smith believes AI offers “opportunities to streamline, remove friction and increase speed, while also increasing the engagement quality between broker and lender and hopefully between broker and customer”.

He noted that procedures that once may have taken hours could now take seconds, thanks to automation.

“We see AI as a game changer not only for efficiency but for improving the broker experience, therefore making it possible to better serve more customers,” Smith added.

For Thomas, automation “allows us to have that people engagement”. She emphasised that efficiency through automation in the credit and approval processes makes time for focusing on meaningful broker-client interactions.

Williams “couldn’t agree more” that finance is a people business but sees AI as essential for scale without losing the personal touch. “In order to get our people in front of brokers as much as possible, we will need to rely on AI as we scale, agentive AI specifically. All those processes that are easily mapped, that could be done rather than manually, automated through agentive AI. It’s a no-brainer.”

Coming back to D’Vaz, he acknowledged the operational importance of AI, especially for business development managers. “I think what it does for a BDM is it removes noise, giving them time to see more brokers to build rapport and make a connection. So operationally, definitely, I don’t think it’ll remove that.” He concurred that AI is a tool to enhance, not replace, the human touch.

“We’ve been working with a mantra of ‘eliminate and simplify’. We’re getting the process tighter, eliminating unnecessary forms, and we’re about to move into the digitisation phase” - Tony MacRae, Bluestone Home Loans

At Bluestone, AI “definitely has a role”, said MacRae, but he cautioned that “at the core of what we do, we’re a relationship business”.

“We need to really carefully pick the areas that it is going to add value and where you can rely on it,” he continued. “Because we can’t forget at the end of the day we’ve got responsible lending obligations to adhere to. We can’t just fall back and say, ‘AI told me this was the right thing to do’.”

Bannister sees genuine productivity gains from automation but is sceptical about its use in credit decisioning for complex loans, where at this stage he “doesn’t expect it will play a meaningful part in the process”. Furthermore, La Trobe Financial does not employ offshoring teams, although he believes this is an area ripe for AI disruption.

For MA Money, AI is about empowering brokers to self-serve 24 hours a day. “We’ve got a lot of brokers that are working weekends, working after hours when BDMs are not available,” noted Lemon.

But he stressed the importance of oversight. “We keep track of everything we do with AI, and we keep a very close eye on it to make sure that the imagination of the AI doesn’t take over. So we try to keep it very strict at the moment.”

ORDE is a solutions-based lender that wants to say yes to as many deals as possible. Ford said, “We’re investing heavily in AI, not just for efficiency but to help with early-stage assessment, packaging and other parts of the process. It means our One Lending Team can focus on understanding the customers’ stories, sharing knowledge and supporting brokers through the deal.”

A constant internal conversation at ORDE is about “the balance between what our people can do and what digital can do. And it’s equally important in a broker’s role: understanding what are those things that can’t be replaced by technology: building trusted relationships and delivering tailored advice”.

Ford added, “You’ve really got to focus on building strong relationships and adding value beyond just knowing the products.”

Wright noted that the human side of AI adoption is often overlooked. “Many people are understandably anxious about what AI might mean for their roles and the broader industry, but we see it as an opportunity to enhance what people do best. When it’s used the right way, it can actually make the work we do more efficient and more rewarding,” she said.

She recounted a story of a broker whose credit process dropped per complex deal from 10–12 hours to just 30 minutes with AI, and how experienced brokers were shocked but also motivated by the change.

Wright believes there is a “huge” technological leap that has to be made in the commercial side of the broking business.

“We’ve definitely seen more interest in the bridging sector … That’s come from confidence in the market” - Katie Thomas, Focus Finance

For Pallas, AI is “all about increasing efficiencies”, Arnold said. “We lean a lot on personal contact, as has been discussed, as well as the education piece and being available to define products.” However, he added that human services and AI “are both complementary” to each other.

How are you getting your message across to customers and the broking community, given lower brand awareness compared to traditional lenders?

Changing direction entirely, the discussion shifted to branding and marketing.

There is no doubt that the big four have a brand awareness advantage, but there is a debate around how important this is for customers in 2025.

In MPA’s latest Brokers on Non-Banks report, brand trust came in 10th in a survey of what brokers want from non-banks. Credit policy, BDM support, turnaround times, rates, communications, commission structures and product range all ranked higher. However, nearly 10% of brokers cited ‘lack of brand awareness’ as the main barrier to putting more business through non-bank lenders. So, while brokers tend to prioritise fundamental support over brand identity, the latter can still be a barrier to volume growth.

Smith acknowledged that brand awareness plays a key role and that Liberty is proud of its continued strong reputation and positive brand awareness in the market.

He said Liberty is also focused on being front of mind for brokers when they have a deal that might fall outside the traditional lending space. “Brokers know Liberty stands for flexibility and free-thinking solutions that go beyond the mainstream.”

Smith also emphasised the importance of “tech-enabled conversations” to ensure brokers remember Liberty when they encounter scenarios that don’t fit standard bank policy – particularly important given the thousands of emails and conversations that brokers are constantly juggling.

“Being a 100% broker business, our thought process is winning over one broker at a time, giving them a great experience, leveraging them for word of mouth” - Tim Lemon, MA Money

While it might not sound glamorous, for Thinktank it’s all about delivering on the promises you make and building advocacy through connecting with people. Wright challenged the notion that brokers aren’t loyal. “Brokers are incredibly loyal when you provide competitive pricing, reliable service and genuine support – they value lenders who truly partner with them to help them deliver great outcomes for their clients.”

Ford highlighted the unique position of non-consumer brands like ORDE, whose reputation is built almost exclusively through the broker channel as they only work with brokers. “It’s the brokers who carry our message to their customers, largely,” he said, adding that ORDE’s new website is “resourceful, but it’s really the brokers that carry that messaging for us”.

Ford pointed out that trust in big brands only has shifted. It was more difficult to be considered without a big-name brand in pre-GFC times, but things have substantially changed. “People are more open to new players now … but for us broker advocacy is key.”

Williams said the non-bank sector is “doing something right” as it continues to grow year on year. “We are getting the message out there,” she said, but highlighted the need to “grow exponentially, not just at the same rate”.

Williams noted that many of the lenders around the table don’t just offer loans through their brand – they also partner with aggregators and offer white label funding opportunities, which have helped grow the sector.

She also stressed the importance of education, especially when regulatory changes or shifts in bank appetite occur. “We have to continue to diversify our product specs and how we look at rate-for-risk lending to capture those Australians that fall through the cracks,” Williams said.

Regulatory changes that have impacted the banking majors have also spurred growth in the alternative lending space, she added.

Arnold dug into Pallas’s multi-channel approach of “building relationships in person and complementing that with technology and social media, to get our message across”. Listening to the broker market and adjusting products and pricing accordingly is also essential, Arnold added. “It’s a dynamic market, so you’ve got to move with the times as quickly as you possibly can.”

For MA Money, “being a 100% broker business, our thought process is winning over one broker at a time, giving them a great experience, leveraging them for word of mouth”, said Lemon.

He also echoed Ford’s views on the importance of Google reviews. “If a broker recommends a particular lender that customers have never heard of, I find a lot of customers jump to Google reviews, so having positive interactions there makes a big difference.”

“It’s a dynamic market, so you’ve got to move with the times as quickly as you possibly can” - Jason Arnold, Pallas Capital

La Trobe Financial takes a “very bottom-up approach” to distribution, said Bannister. “Very much heart by heart, mind by mind.”

La Trobe Financial has made a deliberate effort to be thought of in the market as the “first bank alternative”.

Briefly switching back to the AI discussion, Bannister contended that as more mainstream lenders adopt automated approaches to lending, this will allow non-banks to differentiate themselves in the market.

MacRae explained how Bluestone employs a multifaceted approach that puts genuine partnerships at the core. “Having the right people on the ground, building relationships and talking with brokers about how they can grow their businesses helps us get the message across in a one-to-one approach.”

Bluestone also embraces social media “in a fun way”, running campaigns that involve the whole team and using podcasts, webinars and other digital channels to amplify the company’s message. Not being a traditional bank allows Bluestone to adopt these unique, people-focused digital strategies.

D’Vaz acknowledged the challenge of brand recognition for newer or smaller lenders. He noted, however, that brokers are starting to talk about Assetline and are the business’s “best endorsement”.

“We do the right thing, and our name gets out there,” said D’Vaz. “Three years ago, we wouldn’t be at this table. But we’re better than what we were yesterday, and we’ll continue to do what we have to do.”

Are more non-banks considering leaning into SMARTvals to ensure transparency on deal submissions?

As the roundtable’s guest broker, Thomas pointed out that many non-bank lenders still fall short when it comes to offering upfront valuations.

Without them, she explained, brokers are often submitting deals “blind”, unsure whether the property will value up, which can ultimately land as a waste of time to broker, client and non-bank – especially if the purpose was for an equity release that then isn’t facilitated with a valuation that would support the transaction.

In contrast, Thomas believes banks that provide far greater access to transparency on upfront valuations give brokers confidence at the submission stage. This in turn drives higher submission volumes to these banks as they have accurate information to support the deal.

D’Vaz explained that Assetline’s valuation process is dictated by its funders. “We’re guided by our securitised programs and wholesale funding,” he said. “The covenants are that a short-form valuation has to be on every deal. They set the agenda for this really, and we don’t have anything to do with it.”

He rejected the assumption that lenders sometimes try to influence the valuation. “We just want what the property is valued at,” said D’Vaz. “It’s an ‘arm’s length’ outsourced task where the lenders have no say in the outcome.”

Arnold described Pallas’s more flexible approach in the commercial and construction space. “We’ve got a pretty extensive panel in each state, and a lot of the experienced commercial brokers know these panels,” he said.

Brokers can engage these valuers up front, Arnold explained, “and they might even get a draft valuation. Then we can redirect that valuation report.”

Lemon highlighted that MA Money allows upfront valuations, noting the lender’s use of automated valuation models (AVMs) for loans up to $2 million and 75% LVR, and desktops up to $2 million and 80% LVR, with short-form valuations for larger amounts.

He added that while smart valuations are not yet fully realised, the industry is moving in that direction, though “we’ve still got our masters that we have to adhere to”, although there is a sense that they’re becoming “a little more relaxed” on the valuation front.

“It’s our responsibility to continue to showcase how we meet the real needs of borrowers that banks often miss” - Siobhan Williams, Pepper Money

La Trobe Financial is exploring desktop valuations and the SMARTval digital property valuation service, Bannister revealed, finding these suitable for certain scenarios. For larger commercial and development finance deals, La Trobe Financial gives brokers the ability to order full valuations up front, “but expects it will take some time before commercial desktop valuations are adopted”.

Bluestone, which has also adopted SMARTval, provides “a diverse range of valuations and valuations up front”, said MacRae. “The beauty of SMARTval is that it’s much quicker and it’s treated like short-form full valuation from a funding perspective.”

MacRae added that the industry as a whole needs to get better at accepting automated valuation models (AVMs), seeing digitisation and data-based valuations as a real opportunity for the sector.

Ford explained that ORDE is willing to engage with deals considered too complex for other major lenders. “Alongside being able to handle more complex customers, we also look at the strength of the security. In commercial lending, that means assessing the lease agreement, considering alternate uses of the property and often undertaking more detailed valuations than brokers might be used to in residential.”

Pepper Money is also live with AVMs and recently launched SMARTval. Furthermore, it doesn’t charge for upfront valuations on prime deals, although riskier products require the customer to pay for the valuation. Exceptions are sometimes made for high-conversion brokers, but non-converting loans won’t have costs covered.

At Thinktank, which has also implemented SMARTval, Wright highlighted the complexity of commercial lending. She outlined the challenge of convincing multiple institutional funders – often up to 16 at a time – to accept changes in underlying arrangements.

“The work that goes on behind the scenes to bring new product features, third party solutions and other innovations to market is often underappreciated, and we have a great team that works tirelessly on these things to continually improve the experience for our brokers and their clients,” said Wright.

According to the latest MFAA data, non-bank lenders command a 5.9% share of broker-originated lending. How do you all intend to work together as an industry to increase your market share?

To wrap things up, the roundtable gave their thoughts on where the non-bank lending industry is headed next.

MacRae sees healthy competition as a force for industry growth but believes collective advocacy is essential for real progress. “It’s important that we all promote and push competition, but I think there’s an opportunity as a non-bank, non-standard lending group to better lobby and lobby for change.”

He pointed to areas where banks have a competitive advantage – such as with acceptance of AVMs and electronic valuations – and called for a united front. “We haven’t done a great job of gelling together and being one group for lobby.”

MacRae also mentioned the need to shift the policy focus from demand-side to supply-side solutions in the housing market: “You never solve a supply problem by fuelling demand. We’ve actually got to shift the focus, and as a group I think we can do it. It’s a battle I’m really keen to forge forward with.”

Lemon reflected on the rapid evolution of non-bank lending: “In the early days of non-bank lending, things didn’t change as quickly as they do today. With more competition, we’re all looking for that little difference. As we all push our funders to accept more or do more, it just opens up that ability for those non-bank customers to achieve more and do more.”

Lemon noted that increased competition and events like this roundtable help push the industry forward, citing the rise in loan-size caps as evidence of progress.

“When we’re in a time when Google reviews can make or break your business, the experience becomes more crucial for the broker and their end customer” - Tim Ford, ORDE Financial

Bannister pointed out that non-banks have previously achieved higher market share in times of greater liquidity. “We’ve been there before,” he said, citing pre-COVID stats of 9% or more of market share.

Bannister anticipates that as banks focus on proprietary channels, brokers will need to look externally to protect their customer bases. He sees commercial lending as a “huge opportunity”, noting that broker market share in the commercial space significantly trails broker share of the residential market.

He also highlighted that the domestic market is behind the global curve in private credit. “We’ve got a lot of catch-up to do here in Australia, and private credit non-bank lenders will have to play a critical role to unlock this growth.”

Arnold agreed that competition has driven positive change, “and that can only be made possible in the broking market”. He sees the Australian market maturing, with more institutional capital arriving from offshore and non-banks pushing boundaries on loan amounts and pricing.

Arnold also sees commercial lending as “a massive opportunity” for the broker market. Certainly, with an estimated commercial lending market share of just 30–40% compared to nearly 80% in the residential market, there is a lot of headroom for brokers to grow in this space.

Williams identified commercial lending and construction as fast-growing segments for non-banks, with SMSF lending also offering significant diversification opportunities. “That is part of our strategic direction into 2026,” she said, noting that it’s the non-bank sector that largely serves these segments.

Williams went on to argue that non-banks are no longer just an alternative to traditional lenders. “Non-bank options can often be the best fit for the client,” she said. “And I think it’s our responsibility to continue to showcase how we meet the real needs of borrowers that banks often miss.”

Ford emphasised the importance of training and education in growing the non-bank segment, particularly for brokers who are not yet active in the space. He added that the competitive landscape has forced everyone to improve, “creating better outcomes for brokers and their customers – and helping a wider range of customers”.

Ford also highlighted the need to help brokers write more complex deals and to articulate the unique problems non-banks can solve.

Wright believes that as banks make their lending intentions clear, they are creating an opportunity for brokers to diversify. She said, “As banks signal where they’re concentrating their efforts, brokers who haven’t been as active in the non-bank space have a real opportunity to further diversify their offering. Brokers who can offer a wider range of solutions to their client base will typically find they cultivate stronger and deeper relationships while creating new advocates in the process.”

Wright also stressed the importance of education and support for brokers transitioning into commercial, adding, “Brokers are often encouraged to diversify, but the reality is the options and related processes vary so much that it’s not always easy. That’s where experienced guidance and the right partners make all the difference.”

So, while a large cohort of commercial brokers know commercial deals like the back of their collective hand, it’s the resi brokers who stand to benefit the most from greater guidance and support from the industry.

D’Vaz called out the ‘diversification’ buzzword and the confusion around the term ‘non-bank’. He argued that established, reputable non-banks are often lumped in with new or fringe players, and suggested the media could help lead the agenda in clarifying the sector’s identity. “Somebody can start up a payday lender and call themselves a non-bank. But really, businesses that have been around for years and years are put in the same bucket as them.”

Smith concluded that the definition of ‘non-bank’ is evolving, just as the market is. “There is a lot of opportunity for non-banks, and we believe the potential is far bigger than the current market share suggests. The market we collectively can serve is likely triple what it is currently, and it will be any minute now,” he said.

“I’m all for industry unity to help further build the profile of non-banks and the diverse range of solutions we can offer. By championing choice and educating brokers and borrowers, we can grow the pie for everyone and help more Australians access lending that truly fits their needs."