International Insights & Key Learnings

Mario Rehayem, CEO, Pepper Money ANZ; DianeTate, CEO, AFIA; Lyn McMorran, CEO, Financial Services Federation & Leigh Lytle, CEO, Equipment Leasing & Finance Association

Key economic conditions

• Financial Services Federation – New Zealand

  • Select Committee inquiry through the NZ Parliament is looking at business and rural lending.

  • Kiwi-bank make up to 5% of the lending market. Big four banks make up 90% of the market. Non-bank-lenders are a small percentage.

  • Members have relations with 1.7 million New Zealanders.

• Equipment Leasing & Finance Association – U.S.

  • For those sitting on capital as a non-bank lender, there’s a lot of market opportunity for growth. There will be pressure around the onshoring of manufacturing in the U.S.

  • There’s been a dramatic uptick in private capital.

  • From a tech standpoint it’s a race.

Issues facing members

• AFIA - Australia

  • Private capital will get a lot of regulatory scrutiny in Australia.

  • There’s been an increase in mortgage and asset brokers in the last few years, and consumer sentiment means they’re outsourcing thinking to brokers.

• Financial Services Federation – New Zealand

  • The biggest issue for members is access to capital. Some take deposits from public which is fraught with regulation. Others rely on securitisation market, and the banks make money off this.

  • Previous Labor government didn’t have principles-based regulation – it was largely prescriptive.

  • New incoming government has put consumer credit legislation as one of their priorities. The more prescriptive regulation becomes, the less lenders can provide credit to those who need it.

• Equipment Leasing & Finance Association – U.S.

  • Adoption of technology will only accelerate (e.g. AI). Those best served are early adopters.

  • Move fast and break things doesn’t work that well in financial services. Members can learn a lot from traditional financial institutions in terms of combating fraud.

  • There will be a lot of regulatory pressure on non-bank lenders in the US.

What roles do associations play?

• Financial Services Federation – New Zealand

  • Moving into education space, looking at micro prudential and consumer credit.

  • Noted that it’s important for industry associations to work together.

• Equipment Leasing & Finance Association – U.S.

  • Biggest value add is advocacy. A lot comes from convening experts on the ground to get the best advice to get best outcome for members.

• AFIA - Australia

  • Core value proposition of AFIA is that collective voice is stronger.

  • At the end of the day, its problem solving. Either creating opportunity for growth or competition or responding to a regulatory issue.