BIG BANKS LOSING OUT TO PRIVATE FUNDERS BECAUSE OF THEIR SLOW RESPONSES & HIGH REQUIREMENTS

Posted by Henry | BANKS,PRIVATE LENDERS | Thursday 24 October 2013 11:22 am
Big banks lack what it takes to help people
in financial crisis
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Borrowers are increasingly seeing non-bank lenders as a genuine alternative to
the major banks when taking out personal loans.
According to Veda Applied Intelligence’s Consumer Index, the market share for
pay day lenders has tripled between February 2009 and February 2013.
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Thousands of Australians like Donna Lee Baker from Queensland
are frustrated with the long application and approval processes of big banks in a
time of financial crisis.
Ms Baker says she has lost count of how many loans she’s taken out in the
past decade but not one of them has been with a bank.
“I went to take out a small loan for the first time over 12 years ago, and I had
initially approached a bank,” Ms Bobbert says.
“I had no defaults on my credit rating, but still had a hard time because I didn’t
have enough assets or a great deal of savings in my account–even though if
you had assets and savings you wouldn’t need to borrow.
“Then it’d be another couple of weeks until you even knew if you had it anyway.”
Ms Bobbert says that’s far too long as she only applies for loans when it’s urgent
and causing her to need more money straight away.
“When I’ve fallen ill or a family member is sick, I’ll get a loan to help ease the
burden as we need money urgently–this is why banks can’t help me,” Ms Baker says.
“It’s sudden costs like holding a funeral and wake, where you have very little time to prepare but you need to come up with the finances straight away.
“Applying through a bank I’d have to wait 7-14 days just to find out if I was
approved before they even began to transfer the money.”
Ms Baker says she found her financial safety net in some private funders, where she’s been getting all of her small loans over the years.
“A bank couldn’t help me where private funders could,” Ms Baker says.
“Whenever I have needed to call on them, the application process is fast and I have the money in my account the same day
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Henry Sapiecha
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