MPA heard from three CEOs on what impact peer-to-peer lending might have on the mortgage industry down the track.
MPA heard from three CEOs on what impact peer-to-peer lending might have on the mortgage industry.
Peter White.JPG)
CEO
FBAA
I am always looking at where the next level of innovation in our industry will come from. P2P is quite well established overseas in Europe and the US, so it is a natural progression that we would see its growth here in Australia. It is something we all need to embrace as it is having and will continue to have a positive impact in our industry.
Brokers need to think ‘outside the box’ about how their businesses can benefit from P2Ps, as we’ve already seen the likes of Uber strategically looking to expand their business here through a P2P lender. Consumers can also benefit from P2P, with competitive interest rates for unsecured personal loans which are processed in a very quick timeframe and can benefit many broker clients. We need entrepreneurs and strategic thinkers to keep pushing the boundaries of our industry and bring new, exciting and innovative lending structures to the table that can benefit everyone in the broking sector.
Sunil Aranha
CEO
ThinCats
The emergence of peer-to-business lending is a wonderful opportunity for business, commercial and residential mortgage brokers to access yet another funding source for small and medium-sized businesses. As banks’ business loans are primarily based on real estate asset values, there are numerous instances of SMEs being unable to finance business growth through bank finance when sales growth outstrips the value of their real estate LVR limits.
This is a classic instance of when brokers can off er a solution to their clients by including a peer-to-business lending platform such as ThinCats Australia. Loans arranged by ThinCats are generally for terms of two to fi ve years, with principal and interest payments at competitive interest rates between 12% and 15% per annum. And as ThinCats is not a bank, the loans are flexible, with borrowers being able to return to the platform for further finance if cash flows support, as well as repay the loans at any time with no early penalties.
James Green
CEO
Century 21 Home Loans
P2P lending won’t really affect the mortgage market as P2P investors don’t have the credit skills or sophisticated funding structures to make 30-year mortgages, at 4% per annum, a worthwhile investment.
There are better returns elsewhere for the P2P marketplace, for example venture capital and micro lending.
P2P will and has in my opinion begun disrupting venture capital finance and micro lending. The risk return with smaller investments appears to be more aligned.
Peter White
CEO
FBAA
I am always looking at where the next level of innovation in our industry will come from. P2P is quite well established overseas in Europe and the US, so it is a natural progression that we would see its growth here in Australia. It is something we all need to embrace as it is having and will continue to have a positive impact in our industry.
Brokers need to think ‘outside the box’ about how their businesses can benefit from P2Ps, as we’ve already seen the likes of Uber strategically looking to expand their business here through a P2P lender. Consumers can also benefit from P2P, with competitive interest rates for unsecured personal loans which are processed in a very quick timeframe and can benefit many broker clients. We need entrepreneurs and strategic thinkers to keep pushing the boundaries of our industry and bring new, exciting and innovative lending structures to the table that can benefit everyone in the broking sector.
Sunil AranhaCEO
ThinCats
The emergence of peer-to-business lending is a wonderful opportunity for business, commercial and residential mortgage brokers to access yet another funding source for small and medium-sized businesses. As banks’ business loans are primarily based on real estate asset values, there are numerous instances of SMEs being unable to finance business growth through bank finance when sales growth outstrips the value of their real estate LVR limits.
This is a classic instance of when brokers can off er a solution to their clients by including a peer-to-business lending platform such as ThinCats Australia. Loans arranged by ThinCats are generally for terms of two to fi ve years, with principal and interest payments at competitive interest rates between 12% and 15% per annum. And as ThinCats is not a bank, the loans are flexible, with borrowers being able to return to the platform for further finance if cash flows support, as well as repay the loans at any time with no early penalties.
James GreenCEO
Century 21 Home Loans
P2P lending won’t really affect the mortgage market as P2P investors don’t have the credit skills or sophisticated funding structures to make 30-year mortgages, at 4% per annum, a worthwhile investment.
There are better returns elsewhere for the P2P marketplace, for example venture capital and micro lending.
P2P will and has in my opinion begun disrupting venture capital finance and micro lending. The risk return with smaller investments appears to be more aligned.
