Article courtesy of Australian Broker Online
Lenders say they are not worried if supermarket giant Coles expanded its financial service reach into the mortgage industry.
Coles, which operates more than 2,300 retail outlets, indicated in its submission to the Financial Systems Inquiry that it would like to expand its financial services offerings to include home loans.
Iconic Home Loans managing director James Pibworth said with Coles’ large regular customer base and brand that consumers enjoy and trust, finance would be the next logical step – but Iconic would not feel threatened.
“Competition is welcome; it would be nice if Coles opened up to the third party intermediary channel.”
Pibworth used to be a broker in the UK and saw how supermarkets there tended to target the “absolute cream vanilla market” rather than anyone who needed a more complex offering.
“They are not going to help a first home buyer that is scraping together a deposit to build a home, a self-employed welder looking to refinance and pay out an ATO debt or a developer building a four-unit site.
“It’s no different to U Bank and such lenders that have fantastic offerings but for a limited part of the market – which is fine, that’s not our core business.”