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A changing lending market
As interest rates settle into a lower band, New Zealand’s non-bank lenders are emerging stronger in the financial sector, particularly for borrowers seeking options beyond standard bank loans.
A combination of more complex lending needs, the growth of the adviser channel in lending overall, frustration at a lack of urgency or flexible options from traditional lenders, and a strong focus on building trust through relationship-driven transactions is providing more of a tailwind for non-banks.
As underlying economic conditions look set to improve somewhat, the only question that remains is whether the roots set down over the last few years by the specialist banking sector can continue to hold and mature.
Non-banks started off on the back foot in terms of reputation, once viewed as an option only for the desperate.
“In the past, non-bank lenders were often seen as a last resort when the big banks said no. That perception has changed significantly,” says Phil Bennett, head of lending at First Mortgage Trust (FMT). “Today, more people are turning to lenders like FMT as their first choice, preferring the flexibility and personal touch we offer over traditional banks.”
The shift partly reflects broader changes in borrower needs, which have moved beyond the fare of simpler times.
“We know that the needs of borrowers can vary greatly and often include a number of complications. At the same time, it seems the main banks continue to focus on more vanilla-type transactions,” says Luke Jackson, chief executive at Go Lend.
This evolution has created new opportunities as the lending market becomes more diverse and can cater to more borrower types.
Speed, service and technology
One key differentiator between traditional banks and specialist lenders is speed to decision.
“Unlike the larger, slower-moving big traditional banks, we prioritise transparency and fast decision-making – qualities advisers and their clients value,” says Bennett.
“We know not every situation fits a one-size-fits-all model, so we provide tailored solutions for bridging finance, equity release, residential loans, commercial and industrial loans, development and construction loans, and investment-related residential funding.”
Professional expertise that is mutually reinforcing
Industry knowledge runs deep in the sector, a factor that boosts confidence.
“Most specialist lending staff often initially come from various levels from within the main banks and already have deep understanding of the typical mainstream offerings,” says Jackson. “These staff then deepen their knowledge by developing the additional pragmatic skill set of non-bank lending.”
Experience matters in complex situations.
“We’re seeing some really encouraging digital changes within the aggregator and CRM space that we think are speeding up application generation for advisers,” says Rolls. “And Basecorp is benefiting from this, with the quality of applications overall being consistently high from advisers.”
Building trust to counter misconceptions
Trust comes through strong relationships but also through reliable delivery and robust communication.
“We believe a customer-first approach and focus on exceptional service is what builds trust,” says Stychinsky. “Our track record and experience demonstrates our reliability, and the confidence of advisers and customers only grows throughout the lending process. The best way non-banks can showcase their services is to prioritise the customer every step of the way.”
Because most non-bank customers are introduced to lenders via advisers, a certain amount of the explanation legwork is handled by advisers who are already familiar with the advantages of going through a non-bank.
An exciting outlook for the future
Market conditions create opportunities. “We are well past the interest rate high-water mark for this cycle,” says Rolls, “and while economic challenges persist as GDP growth remains negative and consumer confidence remains fragile, 2025 should steadily bring improvement and greater optimism.”
But the impact of the monetary tightening cycle will continue to reverberate at the same time. “The challenges traversed in the past few years have depleted savings and weakened balance sheets,” says Smith, “so even with the relief that comes with interest rate reductions, the focus for many will be on getting back to a good place financially. We anticipate that consumers will continue to make financial decisions with reasonable conservatism.”
Backing this view, the Westpac Economic Overview for February showed a massive gap between expected business activity for the next three months and experienced activity over the last three months, suggesting some survey respondents may be in for a reality check around the speed and degree of any improvement.
The idea of a return to the high-flying market many investors fondly remember is probably wishful thinking. “While interest rates have come down, they’re unlikely to return to the record lows we saw a few years ago,” says Bennett.
But economic stress will still present opportunities for non-banks as more borrowers will have a worse standing with traditional banks than a few years ago.
“The ongoing cost of living pressures and broader economic factors continue to pose challenges for customers, making access to credit more difficult for some,” says Boyce.
Banks, despite their lumbering ways, also still pose a challenge – but the nimbler non-banks are likely to eke out more share as the market grows and complex deals increase in number.
“Traditional banks are still playing in the non-bank space with a broader risk appetite,” says Boyce. “However, as the economy strengthens and banks return to more conventional risk models, we anticipate greater opportunities for non-bank lenders to thrive.”
The second half of the year could be easier than the first, and even the regulatory environment could help non-banks’ interests.
“Debt-to-income restrictions could also create demand for non-bank solutions from large property investors,” says Stychinsky. “While these new lending rules mean banks are further constrained, these same restrictions don’t apply to non-bank lenders. This could present new opportunities for us.”
The pace of regulatory change may be less of a theme looking ahead. “We see less pressure over the next few years as much of the regulatory burden has been rolled back or is in the process of doing so by the new government,” says Rolls. “And so we’re hopeful that the regulatory challenges will continue to decrease in the coming few years.”
Bennett is wary of geopolitical tensions and global economic volatility as a possible fly in the ointment but also sees an upside to such uncertainties. “New Zealand’s position as a relative safe haven, backed by strong economic fundamentals, provides resilience during times of global instability,” he says.
Indeed, non-banks will be able to weather even a weak economy. “In a growing market there are more transactions, and in a recessive market there is an increased need for non-bank providers,” Jackson explains.
The industry remains adaptable regardless of whether things improve greatly or only marginally.
“There will always be risks for both NZ and our sector, and at Basecorp we feel we’re building a resilient business that can continue to support advisers regardless of what NZ, the economy or interest rates are doing,” says Rolls.
The focus for non-banks will be on continuing to provide great service regardless of what the market is doing. “As a one-stop shop for advisers, our expertise ensures they can confidently rely on us to handle more intricate cases that may not fit within the traditional banking model, enabling them to better serve their clients in a changing market,” says Boyce.
Ultimately, what is good for advisers will also be good for non-banks.
“The collaboration between non-bank lenders and advisers remains key to unlocking the full potential of the non-bank lending sector, driving growth and developing a more inclusive financial system,” says Smith.
“By staying connected to our advisers and responsive to market changes, non-bank lenders will continue to contribute to the growth of the financial ecosystem and expand their market share.”
With a bit of luck, all boats should rise in the tide as the property market adjusts to a looser monetary environment.
“This should only increase the opportunities for us all to be relevant to advisers in coming up with smart and efficient solutions on a more regular basis. It’s an exciting time,” says Rolls.
“That said, there is still a lot of work to do in educating a significant number of other mortgage advisers whose skill sets are currently limited to main retail bank products,” says Jackson. “We know that there are many potential borrowers who are currently missing opportunities because their adviser cannot see their situation fit into a main bank and for whatever reason is unaware of all the options available to them.”
Non-banks are pushing advisers to up their game, and while education has always been paramount to their mission, there has been a recent increase in efforts to educate them as the market emerges from a stagnant period.
“This year we will continue in our commitment to adviser education via our Quarterly Insights and fortnightly training webinars,” says Smith. “We see it as a part of our role to continually educate the market on what we offer and raise the profile of non-banks overall, to help advisers maximise every lead and customer interaction they have.”
Once trust is established, customer loyalty is strong. “Many of our clients return to us because they know our team, trust our process and like that we’re a Kiwi company with a 30-year history giving them peace of mind,” says Bennett.
The industry also maintains high standards, something non-banks view as essential to their business.
“Financial services is a professional industry, and with that comes expected regulations and market protections,” says Jackson. “Managing these requirements is just part and parcel of being a professional organisation.”
This includes compliance matters. “Regulation is an important and necessary part of operating in the financial services sector, and we fully embrace it,” Bennett says. “For us, compliance isn’t just about meeting standards, and as an investment fund manager it’s about giving our investors peace of mind.”
Certain misconceptions about the role of specialist lenders are also important to address when lifting trust levels – a theme for the future that resonates across the industry.
“One of the biggest opportunities ahead lies in increasing awareness about the value of the non-bank/specialist lending and private credit industry,” says Bennett. “There’s still a lot of misunderstanding around what we do, so educating borrowers, the public and regulators about our flexibility, tailored solutions and customer-focused approach is key to building trust.”
As always, the relationship with advisers remains crucial, and professionalism on both sides is mutually reinforcing.
“As customers increasingly seek access to a broader range of lending options and personalised advice, third-party intermediaries – such as mortgage advisers and finance brokers – are becoming essential in guiding customers through these choices,” says Boyce.
“With more and more customers turning to financial advisers and mortgage advisers, we’re committed to helping our introducers diversify and grow their businesses while delivering the best outcomes for their clients.”
Advisers who can cater to the more complex needs of non-bank customers are finding their expertise more in demand. “This wider skill set is now being called upon by more of the market, particularly as mainstream lenders apply greater focus into rule-based auto-decisioning,” says Jackson.
Rolls says that “most advisers are very clued up on non-bank options when bank funding is unavailable, and our industry has successfully built significant awareness of options in our space”. This means that non-banks can focus on being reliable partners rather than having to spend time getting advisers up to speed.
“Basecorp’s focus is not on education but about being a consistent ‘through the cycle’ partner for advisers with good levels of funds availability and a relationship-driven approach, so they can depend on us for solutions when needed.”
Banks sometimes seem to find it difficult to keep up with the changing market.
“Speed of response has become more and more important. While banks have expanded their risk appetite, they are often stretched and slow to respond, particularly with complex applications or new customers,” says Boyce.
“In some cases, banks have even stopped accepting applications from new customers altogether. As a result, advisers are finding it difficult to get answers from banks, and this is where non-banks pick up the baton.”
Other factors also play a role, such as an increase in less straightforward lending needs.
“We’ve seen the role of advisers continue to grow as borrowers seek support to find unique solutions,” says Stychinsky. “We’re seeing advisers increasingly put forward more complex deals, so it’s important for us as the lender to make the process as easy as possible. As borrowers find creative ways to enter the market, advisers need the support of non-banks who can handle the growing complexity of applications.”
Advisers are behind the drive for better service from lenders. “Our advisers expect quick turnaround times, adaptable loan products and clear communication,” says Smith. “In an evolving financial market, advisers also value strong relationships and support from lenders in changing and dynamic market conditions."
He adds that “advisers are increasingly seeking a more collaborative approach, where lenders and advisers work closely together to meet the client’s needs, both near- and long-term.”
The focus remains on relationships, as well as flexibility and transparency.
Rolls says, “We’ve always emphasised a number of core company concepts with advisers that we don’t think have changed: concepts like sharp turnarounds within 24 hours, a consistent and understandable credit policy, and a broad and flexible product set across all mortgage loan tenors.”
Technology is playing a larger role in service delivery, Stychinsky points out. “At Liberty, we’re a strong advocate for the adoption of technology and the positive impact it can have on efficiency,” he says. “We use digital tools to improve our speed of response and streamline the lending process for better adviser and customer experiences.”
A number of non-banks have introduced tools such as apps or are using AI to try to make processes simpler for advisers.
“Digital tools and technologies have significantly enhanced our service delivery and serve to bolster our advisers’ efficiency,” says Smith. “Pepper Money has high-quality tools and industry-leading digital resources that assist advisers to serve their customers, and expand advisers’ non-bank lending knowledge. We continue to invest in making non-bank lending easier than ever, for both advisers and customers alike.”
Similarly, Avanti has an app that enables customers to access their loan information and manage their accounts on the go through self-service features.
Despite these advancements, the human role in building trust remains essential, Boyce notes. “While technology and AI can enhance our services, they can never replace the personal connection and understanding that we bring to our customers,” he says.
“Non-banks play an essential role in providing customers with greater choice,” says Igor Stychinsky, general manager at Liberty NZ. “We’re especially well placed to service borrowers with more complex circumstances who cannot be supported by traditional lenders.”
The traditional lending model is shifting as the underlying economy and society evolve.
“Despite a challenging environment with high interest rates, rising living costs and expanding risk appetite from the main banks, non-bank lenders continue to play a vital role in addressing housing affordability and enhancing competition in the mortgage market,” says Ian Boyce, general manager, property, at Avanti Finance.
Reflecting these changes, advisers too are responding to the broader range of lending needs, increasing the profile of the third party channel in line with the lift in non-bank business. “The growing preference for intermediated access to finance is driving innovation and competition, leading to more diverse and customer-centric offerings,” says Campbell Smith, country head of Pepper Money New Zealand.
The overall proportion of lending coming via third party channels has steadily increased. A recent Finance and Mortgage Advisers Association of New Zealand (FAMNZ) report showed that while one in three (35%) of all borrowers had secured their last mortgage through a mortgage adviser, the percentage who did so in the last 12 months had risen to almost one in two (46%). First home buyers were even more likely to go through an adviser, with 59% using one in the last year.
“As the size of this channel overall grows, and obtaining finance remains difficult, we [expect to] see increased business as a result,” says Craig Rolls, director and head of the lending team at Basecorp Finance.
Published 17 Mar 2025
Go Lend offers a licensed peer-to-peer marketplace for property-secured loans. Working with our trusted network of nationwide mortgage advisers, we provide tailored lending options for borrowers. With over 50 years of experience in banking, non-bank lending, investment and risk management sectors, we offer skills and experience in the non-regulated short-term property finance market. As specialist lenders, we ensure customers experience quicker approvals and easier access to funding. For our investors we offer a transparent, flexible platform where you can access and select from a range of mortgage-backed loans that provide competitive fixed income returns.
Find out more
Basecorp Finance is a non-bank mortgage lender, in operation since 1997 and headquartered in Hamilton, New Zealand. Basecorp has a loan book of more than $1 billion and is one of the leading non-banks owned and operating in New Zealand. It has developed a broad range of short- and long-term mortgage products to meet the needs of advisers across both residential and commercial property markets. It has a highly experienced team of 15 with a proven track record of managing credit risk through many economic cycles. Basecorp originates over 95% of loans through adviser channels.
Find out more
Liberty offers free-thinking home loans and term deposits to provide Kiwis with greater choice. A pioneer in specialty finance, Liberty recognises borrowers overlooked by traditional lenders and is committed to financial inclusion. Since 2001, Liberty has advanced over $2 billion in home loans, establishing itself as a leading finance company.
Find out more
Since Pepper Money entered the New Zealand market in 2019, it has quickly established itself as a lender that truly embodies the spirit of the non-bank sector. Pepper Money provides a variety of flexible home loan solutions designed to meet customer needs, including some the banks won’t. Pepper Money proudly offers hard-working Kiwis a real-life and flexible approach to lending. It looks at each Kiwi family or individual’s situation. Helping people succeed is at the heart of what Pepper Money does, and that means whether someone is just getting started, recovering or looking to improve their situation. Now and in the future, Pepper Money is here to help people achieve that goal.
Find out more
Avanti Finance has been working with introducers, advisers and brokers to provide flexible options for over 30 years, helping thousands of New Zealanders get into new homes, buy new cars, start new businesses or consolidate their debt. In an industry in which box-ticking is the norm, Avanti Finance does things differently. It looks at the context and background of the borrower, not just the borrowing, because it knows that sometimes ‘life happens’. Talk to Avanti today about its broad range of lending products, including long-term first mortgages, caveat loans, bridging loans, car loans, business loans and personal loans. We’d love to help.
Find out more
First Mortgage Trust (FMT) is an investment fund manager specialising in investments and property finance. For nearly 30 years, FMT has been helping New Zealanders protect and grow their wealth by providing consistent investment returns. Today, the company has over $1.7 billion in funds under management and more than 6,600 investors nationwide. FMT also provides clients with tailored property finance through first mortgages across the residential, commercial, industrial and retail property sectors in New Zealand. FMT has offices in Auckland, Tauranga, Wellington and Christchurch with over 70 staff members and is continuing to grow to meet market demand.
Find out more
“Non-banks play an essential role in providing customers with greater choice. We’re especially well placed to service borrowers with more complex circumstances who cannot be supported by traditional lenders”
Igor Stychinsky,
Liberty
“In some cases, banks have even stopped accepting applications from new customers altogether. As a result, advisers are finding it difficult to get answers from banks, and this is where non-banks pick up the baton”
Ian Boyce,
Avanti Finance
“The growing preference for intermediated access to finance is driving innovation and competition, leading to more diverse and customer-centric offerings”
Campbell Smith, Pepper Money
“Unlike the larger, slower-moving big traditional banks, we prioritise transparency and fast decision-making – qualities advisers and their clients value”
Phil Bennett,
First Mortgage Trust
“In a growing market there are more transactions, and in a recessive market there is an increased need for non-bank providers”
Luke Jackson,
Go Lend
“Most advisers are very clued up on non-bank options when bank funding is unavailable, and our industry has successfully built significant awareness of options in our space”
Craig Rolls, Basecorp
Mortgage adviser market share rising
Percentage of new mortgages written by mortgage advisers in the last 12 months
46%
Percentage of new mortgages for first home buyers written by mortgage advisers in the last 12 months
59%
Source: FAMNZ Consumer Access to Mortgages 2024 report
New Zealand
8%
Australia
15-30%
USA
50%
Source: KPMG Financial Institutions Performance Survey, Specialist Lenders Review of 2024
Non-banks’ share of lending markets
Igor Stychinsky
Liberty
Campbell Smith
Pepper Money
Craig Rolls
Basecorp
Luke Jackson
Go Lend
Phil Bennett
First Mortgage Trust
Ian Boyce
Avanti Finance
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Igor Stychinsky is general manager at Liberty NZ and is responsible for the lending and term deposit operations of the business. He has extensive experience in financial services in New Zealand and internationally. Stychinsky previously held senior management roles at New Zealand Home Loans and Renaissance Investment Management. He holds an MBA from the University of Oxford and a Bachelor of Science from Rochester Institute of Technology.
Liberty
Igor Stychinsky
Campbell Smith is the country head at Pepper Money New Zealand. With over 20 years’ experience in the banking and financial services industry, Campbell has substantial executive leadership, financial and operational experience, having worked in various commercial functions across mortgages and asset finance. In 2022, Campbell joined Pepper Money New Zealand from LeasePlan as director and country manager. He has also worked at organisations including Turners Automotive and Westpac.
Pepper Money
Campbell Smith
Craig Rolls is a director and head of the lending team at Basecorp Finance. He has over 30 years’ experience in the financial industry across many economic cycles and is a well-known industry figure among mortgage advisers.
Basecorp
Craig Rolls
Luke Jackson is CEO of the recently launched non-bank lender Go Lend. Jackson’s experience in the New Zealand finance market spans over 28 years. This initially included a background in corporate, commercial and retail banking within New Zealand major banks. Over the last decade, Jackson has been a senior member of the New Zealand non-bank market. He was instrumental in pioneering the use of peer-to-peer borrowing for secured property loans as CEO of one of the initial platform providers during the early licensing period. More recently, Jackson was general manager New Zealand at one of the publicly listed Australian non-bank mortgage providers.
Go Lend
Luke Jackson
Phil Bennett is head of lending at First Mortgage Trust (FMT). He has a wealth of experience in New Zealand’s banking sector. FMT is New Zealand’s largest specialist lender of first mortgages, providing funds for residential, commercial, industrial and rural investments and developments across the country.
First Mortgage Trust
Phil Bennett
Ian Boyce has over 35 years of experience in financial services, banking and insurance. He has held several senior leadership roles at ASB Bank, driving growth, profitability and strategic initiatives. In November 2022, Boyce joined Avanti Finance as general manager, property. His role, with the support of the wider Avanti team, is to continue the profitable growth Avanti has enjoyed in the very competitive New Zealand property market. Boyce is also one of only 12 New Zealanders named on the prestigious 2024 Mortgage Global 100 list.
Avanti Finance
Ian Boyce
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A changing lending market
As interest rates settle into a lower band, New Zealand’s non-bank lenders are emerging stronger in the financial sector, particularly for borrowers seeking options beyond standard bank loans.
A combination of more complex lending needs, the growth of the adviser channel in lending overall, frustration at a lack of urgency or flexible options from traditional lenders, and a strong focus on building trust through relationship-driven transactions is providing more of a tailwind for non-banks.
As underlying economic conditions look set to improve somewhat, the only question that remains is whether the roots set down over the last few years by the specialist banking sector can continue to hold and mature.
Non-banks started off on the back foot in terms of reputation, once viewed as an option only for the desperate.
“In the past, non-bank lenders were often seen as a last resort when the big banks said no. That perception has changed significantly,” says Phil Bennett, head of lending at First Mortgage Trust (FMT). “Today, more people are turning to lenders like FMT as their first choice, preferring the flexibility and personal touch we offer over traditional banks.”
The shift partly reflects broader changes in borrower needs, which have moved beyond the fare of simpler times.
“We know that the needs of borrowers can vary greatly and often include a number of complications. At the same time, it seems the main banks continue to focus on more vanilla-type transactions,” says Luke Jackson, chief executive at Go Lend.
This evolution has created new opportunities as the lending market becomes more diverse and can cater to more borrower types.
Speed, service and technology
One key differentiator between traditional banks and specialist lenders is speed to decision.
“Unlike the larger, slower-moving big traditional banks, we prioritise transparency and fast decision-making – qualities advisers and their clients value,” says Bennett.
“We know not every situation fits a one-size-fits-all model, so we provide tailored solutions for bridging finance, equity release, residential loans, commercial and industrial loans, development and construction loans, and investment-related residential funding.”
Professional expertise that is mutually reinforcing
Industry knowledge runs deep in the sector, a factor that boosts confidence.
“Most specialist lending staff often initially come from various levels from within the main banks and already have deep understanding of the typical mainstream offerings,” says Jackson. “These staff then deepen their knowledge by developing the additional pragmatic skill set of non-bank lending.”
Experience matters in complex situations.
“We’re seeing some really encouraging digital changes within the aggregator and CRM space that we think are speeding up application generation for advisers,” says Rolls. “And Basecorp is benefiting from this, with the quality of applications overall being consistently high from advisers.”
Building trust to counter misconceptions
Trust comes through strong relationships but also through reliable delivery and robust communication.
“We believe a customer-first approach and focus on exceptional service is what builds trust,” says Stychinsky. “Our track record and experience demonstrates our reliability, and the confidence of advisers and customers only grows throughout the lending process. The best way non-banks can showcase their services is to prioritise the customer every step of the way.”
Because most non-bank customers are introduced to lenders via advisers, a certain amount of the explanation legwork is handled by advisers who are already familiar with the advantages of going through a non-bank.
An exciting outlook for the future
Market conditions create opportunities. “We are well past the interest rate high-water mark for this cycle,” says Rolls, “and while economic challenges persist as GDP growth remains negative and consumer confidence remains fragile, 2025 should steadily bring improvement and greater optimism.”
But the impact of the monetary tightening cycle will continue to reverberate at the same time. “The challenges traversed in the past few years have depleted savings and weakened balance sheets,” says Smith, “so even with the relief that comes with interest rate reductions, the focus for many will be on getting back to a good place financially. We anticipate that consumers will continue to make financial decisions with reasonable conservatism.”
Backing this view, the Westpac Economic Overview for February showed a massive gap between expected business activity for the next three months and experienced activity over the last three months, suggesting some survey respondents may be in for a reality check around the speed and degree of any improvement.
The idea of a return to the high-flying market many investors fondly remember is probably wishful thinking. “While interest rates have come down, they’re unlikely to return to the record lows we saw a few years ago,” says Bennett.
But economic stress will still present opportunities for non-banks as more borrowers will have a worse standing with traditional banks than a few years ago.
“The ongoing cost of living pressures and broader economic factors continue to pose challenges for customers, making access to credit more difficult for some,” says Boyce.
Banks, despite their lumbering ways, also still pose a challenge – but the nimbler non-banks are likely to eke out more share as the market grows and complex deals increase in number.
“Traditional banks are still playing in the non-bank space with a broader risk appetite,” says Boyce. “However, as the economy strengthens and banks return to more conventional risk models, we anticipate greater opportunities for non-bank lenders to thrive.”
The second half of the year could be easier than the first, and even the regulatory environment could help non-banks’ interests.
“Debt-to-income restrictions could also create demand for non-bank solutions from large property investors,” says Stychinsky. “While these new lending rules mean banks are further constrained, these same restrictions don’t apply to non-bank lenders. This could present new opportunities for us.”
The pace of regulatory change may be less of a theme looking ahead. “We see less pressure over the next few years as much of the regulatory burden has been rolled back or is in the process of doing so by the new government,” says Rolls. “And so we’re hopeful that the regulatory challenges will continue to decrease in the coming few years.”
Bennett is wary of geopolitical tensions and global economic volatility as a possible fly in the ointment but also sees an upside to such uncertainties. “New Zealand’s position as a relative safe haven, backed by strong economic fundamentals, provides resilience during times of global instability,” he says.
Indeed, non-banks will be able to weather even a weak economy. “In a growing market there are more transactions, and in a recessive market there is an increased need for non-bank providers,” Jackson explains.
The industry remains adaptable regardless of whether things improve greatly or only marginally.
“There will always be risks for both NZ and our sector, and at Basecorp we feel we’re building a resilient business that can continue to support advisers regardless of what NZ, the economy or interest rates are doing,” says Rolls.
The focus for non-banks will be on continuing to provide great service regardless of what the market is doing. “As a one-stop shop for advisers, our expertise ensures they can confidently rely on us to handle more intricate cases that may not fit within the traditional banking model, enabling them to better serve their clients in a changing market,” says Boyce.
Ultimately, what is good for advisers will also be good for non-banks.
“The collaboration between non-bank lenders and advisers remains key to unlocking the full potential of the non-bank lending sector, driving growth and developing a more inclusive financial system,” says Smith.
“By staying connected to our advisers and responsive to market changes, non-bank lenders will continue to contribute to the growth of the financial ecosystem and expand their market share.”
With a bit of luck, all boats should rise in the tide as the property market adjusts to a looser monetary environment.
“This should only increase the opportunities for us all to be relevant to advisers in coming up with smart and efficient solutions on a more regular basis. It’s an exciting time,” says Rolls.
“That said, there is still a lot of work to do in educating a significant number of other mortgage advisers whose skill sets are currently limited to main retail bank products,” says Jackson. “We know that there are many potential borrowers who are currently missing opportunities because their adviser cannot see their situation fit into a main bank and for whatever reason is unaware of all the options available to them.”
Non-banks are pushing advisers to up their game, and while education has always been paramount to their mission, there has been a recent increase in efforts to educate them as the market emerges from a stagnant period.
“This year we will continue in our commitment to adviser education via our Quarterly Insights and fortnightly training webinars,” says Smith. “We see it as a part of our role to continually educate the market on what we offer and raise the profile of non-banks overall, to help advisers maximise every lead and customer interaction they have.”
Once trust is established, customer loyalty is strong. “Many of our clients return to us because they know our team, trust our process and like that we’re a Kiwi company with a 30-year history giving them peace of mind,” says Bennett.
The industry also maintains high standards, something non-banks view as essential to their business.
“Financial services is a professional industry, and with that comes expected regulations and market protections,” says Jackson. “Managing these requirements is just part and parcel of being a professional organisation.”
This includes compliance matters. “Regulation is an important and necessary part of operating in the financial services sector, and we fully embrace it,” Bennett says. “For us, compliance isn’t just about meeting standards, and as an investment fund manager it’s about giving our investors peace of mind.”
Certain misconceptions about the role of specialist lenders are also important to address when lifting trust levels – a theme for the future that resonates across the industry.
“One of the biggest opportunities ahead lies in increasing awareness about the value of the non-bank/specialist lending and private credit industry,” says Bennett. “There’s still a lot of misunderstanding around what we do, so educating borrowers, the public and regulators about our flexibility, tailored solutions and customer-focused approach is key to building trust.”
As always, the relationship with advisers remains crucial, and professionalism on both sides is mutually reinforcing.
“As customers increasingly seek access to a broader range of lending options and personalised advice, third-party intermediaries – such as mortgage advisers and finance brokers – are becoming essential in guiding customers through these choices,” says Boyce.
“With more and more customers turning to financial advisers and mortgage advisers, we’re committed to helping our introducers diversify and grow their businesses while delivering the best outcomes for their clients.”
Advisers who can cater to the more complex needs of non-bank customers are finding their expertise more in demand. “This wider skill set is now being called upon by more of the market, particularly as mainstream lenders apply greater focus into rule-based auto-decisioning,” says Jackson.
Rolls says that “most advisers are very clued up on non-bank options when bank funding is unavailable, and our industry has successfully built significant awareness of options in our space”. This means that non-banks can focus on being reliable partners rather than having to spend time getting advisers up to speed.
“Basecorp’s focus is not on education but about being a consistent ‘through the cycle’ partner for advisers with good levels of funds availability and a relationship-driven approach, so they can depend on us for solutions when needed.”
Banks sometimes seem to find it difficult to keep up with the changing market.
“Speed of response has become more and more important. While banks have expanded their risk appetite, they are often stretched and slow to respond, particularly with complex applications or new customers,” says Boyce.
“In some cases, banks have even stopped accepting applications from new customers altogether. As a result, advisers are finding it difficult to get answers from banks, and this is where non-banks pick up the baton.”
Other factors also play a role, such as an increase in less straightforward lending needs.
“We’ve seen the role of advisers continue to grow as borrowers seek support to find unique solutions,” says Stychinsky. “We’re seeing advisers increasingly put forward more complex deals, so it’s important for us as the lender to make the process as easy as possible. As borrowers find creative ways to enter the market, advisers need the support of non-banks who can handle the growing complexity of applications.”
Advisers are behind the drive for better service from lenders. “Our advisers expect quick turnaround times, adaptable loan products and clear communication,” says Smith. “In an evolving financial market, advisers also value strong relationships and support from lenders in changing and dynamic market conditions."
He adds that “advisers are increasingly seeking a more collaborative approach, where lenders and advisers work closely together to meet the client’s needs, both near- and long-term.”
The focus remains on relationships, as well as flexibility and transparency.
Rolls says, “We’ve always emphasised a number of core company concepts with advisers that we don’t think have changed: concepts like sharp turnarounds within 24 hours, a consistent and understandable credit policy, and a broad and flexible product set across all mortgage loan tenors.”
Technology is playing a larger role in service delivery, Stychinsky points out. “At Liberty, we’re a strong advocate for the adoption of technology and the positive impact it can have on efficiency,” he says. “We use digital tools to improve our speed of response and streamline the lending process for better adviser and customer experiences.”
A number of non-banks have introduced tools such as apps or are using AI to try to make processes simpler for advisers.
“Digital tools and technologies have significantly enhanced our service delivery and serve to bolster our advisers’ efficiency,” says Smith. “Pepper Money has high-quality tools and industry-leading digital resources that assist advisers to serve their customers, and expand advisers’ non-bank lending knowledge. We continue to invest in making non-bank lending easier than ever, for both advisers and customers alike.”
Similarly, Avanti has an app that enables customers to access their loan information and manage their accounts on the go through self-service features.
Despite these advancements, the human role in building trust remains essential, Boyce notes. “While technology and AI can enhance our services, they can never replace the personal connection and understanding that we bring to our customers,” he says.
“Non-banks play an essential role in providing customers with greater choice,” says Igor Stychinsky, general manager at Liberty NZ. “We’re especially well placed to service borrowers with more complex circumstances who cannot be supported by traditional lenders.”
The traditional lending model is shifting as the underlying economy and society evolve.
“Despite a challenging environment with high interest rates, rising living costs and expanding risk appetite from the main banks, non-bank lenders continue to play a vital role in addressing housing affordability and enhancing competition in the mortgage market,” says Ian Boyce, general manager, property, at Avanti Finance.
Reflecting these changes, advisers too are responding to the broader range of lending needs, increasing the profile of the third party channel in line with the lift in non-bank business. “The growing preference for intermediated access to finance is driving innovation and competition, leading to more diverse and customer-centric offerings,” says Campbell Smith, country head of Pepper Money New Zealand.
The overall proportion of lending coming via third party channels has steadily increased. A recent Finance and Mortgage Advisers Association of New Zealand (FAMNZ) report showed that while one in three (35%) of all borrowers had secured their last mortgage through a mortgage adviser, the percentage who did so in the last 12 months had risen to almost one in two (46%). First home buyers were even more likely to go through an adviser, with 59% using one in the last year.
“As the size of this channel overall grows, and obtaining finance remains difficult, we [expect to] see increased business as a result,” says Craig Rolls, director and head of the lending team at Basecorp Finance.
Published 17 Mar 2025
Go Lend offers a licensed peer-to-peer marketplace for property-secured loans. Working with our trusted network of nationwide mortgage advisers, we provide tailored lending options for borrowers. With over 50 years of experience in banking, non-bank lending, investment and risk management sectors, we offer skills and experience in the non-regulated short-term property finance market. As specialist lenders, we ensure customers experience quicker approvals and easier access to funding. For our investors we offer a transparent, flexible platform where you can access and select from a range of mortgage-backed loans that provide competitive fixed income returns.
Find out more
Basecorp Finance is a non-bank mortgage lender, in operation since 1997 and headquartered in Hamilton, New Zealand. Basecorp has a loan book of more than $1 billion and is one of the leading non-banks owned and operating in New Zealand. It has developed a broad range of short- and long-term mortgage products to meet the needs of advisers across both residential and commercial property markets. It has a highly experienced team of 15 with a proven track record of managing credit risk through many economic cycles. Basecorp originates over 95% of loans through adviser channels.
Find out more
Liberty offers free-thinking home loans and term deposits to provide Kiwis with greater choice. A pioneer in specialty finance, Liberty recognises borrowers overlooked by traditional lenders and is committed to financial inclusion. Since 2001, Liberty has advanced over $2 billion in home loans, establishing itself as a leading finance company.
Find out more
Since Pepper Money entered the New Zealand market in 2019, it has quickly established itself as a lender that truly embodies the spirit of the non-bank sector. Pepper Money provides a variety of flexible home loan solutions designed to meet customer needs, including some the banks won’t. Pepper Money proudly offers hard-working Kiwis a real-life and flexible approach to lending. It looks at each Kiwi family or individual’s situation. Helping people succeed is at the heart of what Pepper Money does, and that means whether someone is just getting started, recovering or looking to improve their situation. Now and in the future, Pepper Money is here to help people achieve that goal.
Find out more
Avanti Finance has been working with introducers, advisers and brokers to provide flexible options for over 30 years, helping thousands of New Zealanders get into new homes, buy new cars, start new businesses or consolidate their debt. In an industry in which box-ticking is the norm, Avanti Finance does things differently. It looks at the context and background of the borrower, not just the borrowing, because it knows that sometimes ‘life happens’. Talk to Avanti today about its broad range of lending products, including long-term first mortgages, caveat loans, bridging loans, car loans, business loans and personal loans. We’d love to help.
Find out more
First Mortgage Trust (FMT) is an investment fund manager specialising in investments and property finance. For nearly 30 years, FMT has been helping New Zealanders protect and grow their wealth by providing consistent investment returns. Today, the company has over $1.7 billion in funds under management and more than 6,600 investors nationwide. FMT also provides clients with tailored property finance through first mortgages across the residential, commercial, industrial and retail property sectors in New Zealand. FMT has offices in Auckland, Tauranga, Wellington and Christchurch with over 70 staff members and is continuing to grow to meet market demand.
Find out more
“Non-banks play an essential role in providing customers with greater choice. We’re especially well placed to service borrowers with more complex circumstances who cannot be supported by traditional lenders”
Igor Stychinsky,
Liberty
“In some cases, banks have even stopped accepting applications from new customers altogether. As a result, advisers are finding it difficult to get answers from banks, and this is where non-banks pick up the baton”
Ian Boyce,
Avanti Finance
“The growing preference for intermediated access to finance is driving innovation and competition, leading to more diverse and customer-centric offerings”
Campbell Smith, Pepper Money
“Unlike the larger, slower-moving big traditional banks, we prioritise transparency and fast decision-making – qualities advisers and their clients value”
Phil Bennett,
First Mortgage Trust
“In a growing market there are more transactions, and in a recessive market there is an increased need for non-bank providers”
Luke Jackson,
Go Lend
“Most advisers are very clued up on non-bank options when bank funding is unavailable, and our industry has successfully built significant awareness of options in our space”
Craig Rolls, Basecorp
Mortgage adviser market share rising
Percentage of new mortgages written by mortgage advisers in the last 12 months
46%
Percentage of new mortgages for first home buyers written by mortgage advisers in the last 12 months
59%
Source: FAMNZ Consumer Access to Mortgages 2024 report
New Zealand
8%
Australia
15-30%
USA
50%
Source: KPMG Financial Institutions Performance Survey, Specialist Lenders Review of 2024
Non-banks’ share of lending markets
Igor Stychinsky
Liberty
Campbell Smith
Pepper Money
Craig Rolls
Basecorp
Luke Jackson
Go Lend
Phil Bennett
First Mortgage Trust
Ian Boyce
Avanti Finance
Industry experts
How specialist lenders are slowly reshaping New Zealanders’ financial options
The great banking alternative
More
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Igor Stychinsky is general manager at Liberty NZ and is responsible for the lending and term deposit operations of the business. He has extensive experience in financial services in New Zealand and internationally. Stychinsky previously held senior management roles at New Zealand Home Loans and Renaissance Investment Management. He holds an MBA from the University of Oxford and a Bachelor of Science from Rochester Institute of Technology.
Liberty
Igor Stychinsky
Campbell Smith is the country head at Pepper Money New Zealand. With over 20 years’ experience in the banking and financial services industry, Campbell has substantial executive leadership, financial and operational experience, having worked in various commercial functions across mortgages and asset finance. In 2022, Campbell joined Pepper Money New Zealand from LeasePlan as director and country manager. He has also worked at organisations including Turners Automotive and Westpac.
Pepper Money
Campbell Smith
Craig Rolls is a director and head of the lending team at Basecorp Finance. He has over 30 years’ experience in the financial industry across many economic cycles and is a well-known industry figure among mortgage advisers.
Basecorp
Craig Rolls
Luke Jackson is CEO of the recently launched non-bank lender Go Lend. Jackson’s experience in the New Zealand finance market spans over 28 years. This initially included a background in corporate, commercial and retail banking within New Zealand major banks. Over the last decade, Jackson has been a senior member of the New Zealand non-bank market. He was instrumental in pioneering the use of peer-to-peer borrowing for secured property loans as CEO of one of the initial platform providers during the early licensing period. More recently, Jackson was general manager New Zealand at one of the publicly listed Australian non-bank mortgage providers.
Go Lend
Luke Jackson
Phil Bennett is head of lending at First Mortgage Trust (FMT). He has a wealth of experience in New Zealand’s banking sector. FMT is New Zealand’s largest specialist lender of first mortgages, providing funds for residential, commercial, industrial and rural investments and developments across the country.
First Mortgage Trust
Phil Bennett
Ian Boyce has over 35 years of experience in financial services, banking and insurance. He has held several senior leadership roles at ASB Bank, driving growth, profitability and strategic initiatives. In November 2022, Boyce joined Avanti Finance as general manager, property. His role, with the support of the wider Avanti team, is to continue the profitable growth Avanti has enjoyed in the very competitive New Zealand property market. Boyce is also one of only 12 New Zealanders named on the prestigious 2024 Mortgage Global 100 list.
Avanti Finance
Ian Boyce
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Go Lend offers a licensed peer-to-peer marketplace for property-secured loans. Working with our trusted network of nationwide mortgage advisers, we provide tailored lending options for borrowers. With over 50 years of experience in banking, non-bank lending, investment and risk management sectors, we offer skills and experience in the non-regulated short-term property finance market. As specialist lenders, we ensure customers experience quicker approvals and easier access to funding. For our investors we offer a transparent, flexible platform where you can access and select from a range of mortgage-backed loans that provide competitive fixed income returns.
Find out more
Basecorp Finance is a non-bank mortgage lender, in operation since 1997 and headquartered in Hamilton, New Zealand. Basecorp has a loan book of more than $1 billion and is one of the leading non-banks owned and operating in New Zealand. It has developed a broad range of short- and long-term mortgage products to meet the needs of advisers across both residential and commercial property markets. It has a highly experienced team of 15 with a proven track record of managing credit risk through many economic cycles. Basecorp originates over 95% of loans through adviser channels.
Find out more
Liberty offers free-thinking home loans and term deposits to provide Kiwis with greater choice. A pioneer in specialty finance, Liberty recognises borrowers overlooked by traditional lenders and is committed to financial inclusion. Since 2001, Liberty has advanced over $2 billion in home loans, establishing itself as a leading finance company.
Find out more
Since Pepper Money entered the New Zealand market in 2019, it has quickly established itself as a lender that truly embodies the spirit of the non-bank sector. Pepper Money provides a variety of flexible home loan solutions designed to meet customer needs, including some the banks won’t. Pepper Money proudly offers hard-working Kiwis a real-life and flexible approach to lending. It looks at each Kiwi family or individual’s situation. Helping people succeed is at the heart of what Pepper Money does, and that means whether someone is just getting started, recovering or looking to improve their situation. Now and in the future, Pepper Money is here to help people achieve that goal.
Find out more
Avanti Finance is an award-winning, 100% New Zealand-owned and operated specialist lender with over 35 years of experience delivering fast, flexible and tailored financial solutions. Avanti has helped thousands of New Zealanders buy a car, pay a bill, purchase a property or grow a business.
By investing in innovation and people, and being relentlessly helpful to its advisers and customers, Avanti sustains a competitive edge through economic cycles and is poised for continued growth. Talk to Avanti’s specialist property lending team today about its broad range of mortgage products designed for a wide variety of borrowers, including long-term first mortgages and caveat and bridging loans.
Find out more
First Mortgage Trust (FMT) is an investment fund manager specialising in investments and property finance. For nearly 30 years, FMT has been helping New Zealanders protect and grow their wealth by providing consistent investment returns. Today, the company has over $1.7 billion in funds under management and more than 6,600 investors nationwide. FMT also provides clients with tailored property finance through first mortgages across the residential, commercial, industrial and retail property sectors in New Zealand. FMT has offices in Auckland, Tauranga, Wellington and Christchurch with over 70 staff members and is continuing to grow to meet market demand.
Find out more
A changing lending market
As interest rates settle into a lower band, New Zealand’s non-bank lenders are emerging stronger in the financial sector, particularly for borrowers seeking options beyond standard bank loans.
A combination of more complex lending needs, the growth of the adviser channel in lending overall, frustration at a lack of urgency or flexible options from traditional lenders, and a strong focus on building trust through relationship-driven transactions is providing more of a tailwind for non-banks.
As underlying economic conditions look set to improve somewhat, the only question that remains is whether the roots set down over the last few years by the specialist banking sector can continue to hold and mature.
Non-banks started off on the back foot in terms of reputation, once viewed as an option only for the desperate.
Speed, service and technology
One key differentiator between traditional banks and specialist lenders is speed to decision.
“Unlike the larger, slower-moving big traditional banks, we prioritise transparency and fast decision-making – qualities advisers and their clients value,” says Bennett.
“We know not every situation fits a one-size-fits-all model, so we provide tailored solutions for bridging finance, equity release, residential loans, commercial and industrial loans, development and construction loans, and investment-related residential funding.”
Professional expertise that is mutually reinforcing
Industry knowledge runs deep in the sector, a factor that boosts confidence.
“Most specialist lending staff often initially come from various levels from within the main banks and already have deep understanding of the typical mainstream offerings,” says Jackson. “These staff then deepen their knowledge by developing the additional pragmatic skill set of non-bank lending.”
Experience matters in complex situations.
“We’re seeing some really encouraging digital changes within the aggregator and CRM space that we think are speeding up application generation for advisers,” says Rolls. “And Basecorp is
Building trust to counter misconceptions
Trust comes through strong relationships but also through reliable delivery and robust communication.
“We believe a customer-first approach and focus on exceptional service is what builds trust,” says Stychinsky. “Our track record and experience demonstrates our reliability, and the confidence of advisers and customers only grows throughout the lending process. The best way non-banks can showcase their services is to prioritise the customer every step of the way.”
Because most non-bank customers are introduced to lenders via
An exciting outlook for the future
Market conditions create opportunities. “We are well past the interest rate high-water mark for this cycle,” says Rolls, “and while economic challenges persist as GDP growth remains negative and consumer confidence remains fragile, 2025 should steadily bring improvement and greater optimism.”
But the impact of the monetary tightening cycle will continue to reverberate at the same time. “The challenges traversed in the past few years have depleted savings and weakened balance sheets,” says Smith, “so even with the relief that comes with interest rate reductions, the focus for many will be on getting back to a good place financially. We anticipate that consumers will continue to make financial decisions with reasonable conservatism.”
Backing this view, the Westpac Economic Overview for February showed a massive gap between expected business activity for the next three months and experienced activity over the last three months, suggesting some survey respondents may be in for a reality check around the speed and degree of any improvement.
The idea of a return to the high-flying market many investors fondly remember is probably wishful thinking. “While interest rates have come down, they’re unlikely to return to the record lows we saw a few years ago,” says Bennett.
But economic stress will still present opportunities for non-banks as more borrowers will have a worse standing with traditional banks than a few years ago.
“The ongoing cost of living pressures and broader economic factors continue to pose challenges for customers, making access to credit more difficult for some,” says Boyce.
Banks, despite their lumbering ways, also still pose a challenge – but the nimbler non-banks are likely to eke out more share as the market grows and complex deals increase in number.
“Traditional banks are still playing in the non-bank space with a broader risk appetite,” says Boyce. “However, as the economy strengthens and banks return to more conventional risk models, we anticipate greater opportunities for non-bank lenders to thrive.”
The second half of the year could be easier than the first, and even the regulatory environment could help non-banks’ interests.
“Debt-to-income restrictions could also create demand for non-bank solutions from large property investors,” says Stychinsky. “While these new lending rules mean banks are further constrained, these same restrictions don’t apply to non-bank lenders. This could present new opportunities for us.”
The pace of regulatory change may be less of a theme looking ahead. “We see less pressure over the next few years as much of the regulatory burden has been rolled back or is in the process of doing so by the new government,” says Rolls. “And so we’re hopeful that the regulatory challenges will continue to decrease in the coming few years.”
Bennett is wary of geopolitical tensions and global economic volatility as a possible fly in the ointment but also sees an upside to such uncertainties. “New Zealand’s position as a relative safe haven, backed by strong economic fundamentals, provides resilience during times of global instability,” he says.
Indeed, non-banks will be able to weather even a weak economy. “In a growing market there are more transactions, and in a recessive market there is an increased need for non-bank providers,” Jackson explains.
The industry remains adaptable regardless of whether things improve greatly or only marginally.
“There will always be risks for both NZ and our sector, and at Basecorp we feel we’re building a resilient business that can continue to support advisers regardless of what NZ, the economy or interest rates are doing,” says Rolls.
The focus for non-banks will be on continuing to provide great service regardless of what the market is doing. “As a one-stop shop for advisers, our expertise ensures they can confidently rely on us to handle more intricate cases that may not fit within the traditional banking model, enabling them to better serve their clients in a changing market,” says Boyce.
Ultimately, what is good for advisers will also be good for non-banks.
“The collaboration between non-bank lenders and advisers remains key to unlocking the full potential of the non-bank lending sector, driving growth and developing a more inclusive financial system,” says Smith.
“By staying connected to our advisers and responsive to market changes, non-bank lenders will continue to contribute to the growth of the financial ecosystem and expand their market share.”
With a bit of luck, all boats should rise in the tide as the property market adjusts to a looser monetary environment.
“This should only increase the opportunities for us all to be relevant to advisers in coming up with smart and efficient solutions on a more regular basis. It’s an exciting time,” says Rolls.
advisers, a certain amount of the explanation legwork is handled by advisers who are already familiar with the advantages of going through a non-bank.
“That said, there is still a lot of work to do in educating a significant number of other mortgage advisers whose skill sets are currently limited to main retail bank products,” says Jackson. “We know that there are many potential borrowers who are currently missing opportunities because their adviser cannot see their situation fit into a main bank and for whatever reason is unaware of all the options available to them.”
Non-banks are pushing advisers to up their game, and while education has always been paramount to their mission, there has been a recent increase in efforts to educate them as the market emerges from a stagnant period.
“This year we will continue in our commitment to adviser education via our Quarterly Insights and fortnightly training webinars,” says Smith. “We see it as a part of our role to continually educate the market on what we offer and raise the profile of non-banks overall, to help advisers maximise every lead and customer interaction they have.”
Once trust is established, customer loyalty is strong. “Many of our clients return to us because they know our team, trust our process and like that we’re a Kiwi company with a 30-year history giving them peace of mind,” says Bennett.
The industry also maintains high standards, something non-banks view as essential to their business.
“Financial services is a professional industry, and with that comes expected regulations and market protections,” says Jackson. “Managing these requirements is just part and parcel of being a professional organisation.”
This includes compliance matters. “Regulation is an important and necessary part of operating in the financial services sector, and we fully embrace it,” Bennett says. “For us, compliance isn’t just about meeting standards, and as an investment fund manager it’s about giving our investors peace of mind.”
Certain misconceptions about the role of specialist lenders are also important to address when lifting trust levels – a theme for the future that resonates across the industry.
“One of the biggest opportunities ahead lies in increasing awareness about the value of the non-bank/specialist lending and private credit industry,” says Bennett. “There’s still a lot of misunderstanding around what we do, so educating borrowers, the public and regulators about our flexibility, tailored solutions and customer-focused approach is key to building trust.”
benefiting from this, with the quality of applications overall being consistently high from advisers.”
As always, the relationship with advisers remains crucial, and professionalism on both sides is mutually reinforcing.
“As customers increasingly seek access to a broader range of lending options and personalised advice, third-party intermediaries – such as mortgage advisers and finance brokers – are becoming essential in guiding customers through these choices,” says Boyce.
“With more and more customers turning to financial advisers and mortgage advisers, we’re committed to helping our introducers diversify and grow their businesses while delivering the best outcomes for their clients.”
Advisers who can cater to the more complex needs of non-bank customers are finding their expertise more in demand. “This wider skill set is now being called upon by more of the market, particularly as mainstream lenders apply greater focus into rule-based auto-decisioning,” says Jackson.
Rolls says that “most advisers are very clued up on non-bank options when bank funding is unavailable, and our industry has successfully built significant awareness of options in our space”. This means that non-banks can focus on being reliable partners rather than having to spend time getting advisers up to speed.
“Basecorp’s focus is not on education but about being a consistent ‘through the cycle’ partner for advisers with good levels of funds availability and a relationship-driven approach, so they can depend on us for solutions when needed.”
Banks sometimes seem to find it difficult to keep up with the changing market.
“Speed of response has become more and more important. While banks have expanded their risk appetite, they are often stretched and slow to respond, particularly with complex applications or new customers,” says Boyce.
“In some cases, banks have even stopped accepting applications from new customers altogether. As a result, advisers are finding it difficult to get answers from banks, and this is where non-banks pick up the baton.”
Other factors also play a role, such as an increase in less straightforward lending needs.
“We’ve seen the role of advisers continue to grow as borrowers seek support to find unique solutions,” says Stychinsky. “We’re seeing advisers increasingly put forward more complex deals, so it’s important for us as the lender to make the process as easy as possible. As borrowers find creative ways to enter the market, advisers need the support of non-banks who can handle the growing complexity of applications.”
Advisers are behind the drive for better service from lenders. “Our advisers expect quick turnaround times, adaptable loan products and clear communication,” says Smith. “In an evolving financial market, advisers also value strong relationships and support from lenders in changing and dynamic market conditions."
He adds that “advisers are increasingly seeking a more collaborative approach, where lenders and advisers work closely together to meet the client’s needs, both near- and long-term.”
The focus remains on relationships, as well as flexibility and transparency.
Rolls says, “We’ve always emphasised a number of core company concepts with advisers that we don’t think have changed: concepts like sharp turnarounds within 24 hours, a consistent and understandable credit policy, and a broad and flexible product set across all mortgage loan tenors.”
Technology is playing a larger role in service delivery, Stychinsky points out. “At Liberty, we’re a strong advocate for the adoption of technology and the positive impact it can have on efficiency,” he says. “We use digital tools to improve our speed of response and streamline the lending process for better adviser and customer experiences.”
A number of non-banks have introduced tools such as apps or are using AI to try to make processes simpler for advisers.
“Digital tools and technologies have significantly enhanced our service delivery and serve to bolster our advisers’ efficiency,” says Smith. “Pepper Money has high-quality tools and industry-leading digital resources that assist advisers to serve their customers, and expand advisers’ non-bank lending knowledge. We continue to invest in making non-bank lending easier than ever, for both advisers and customers alike.”
Similarly, Avanti has an app that enables customers to access their loan information and manage their accounts on the go through self-service features.
Despite these advancements, the human role in building trust remains essential, Boyce notes. “While technology and AI can enhance our services, they can never replace the personal connection and understanding that we bring to our customers,” he says.
“In the past, non-bank lenders were often seen as a last resort when the big banks said no. That perception has changed significantly,” says Phil Bennett, head of lending at First Mortgage Trust (FMT). “Today, more people are turning to lenders like FMT as their first choice, preferring the flexibility and personal touch we offer over traditional banks.”
The shift partly reflects broader changes in borrower needs, which have moved beyond the fare of simpler times.
“We know that the needs of borrowers can vary greatly and often include a number of complications. At the same time, it seems the main banks continue to focus on more vanilla-type transactions,” says Luke Jackson, chief executive at Go Lend.
This evolution has created new opportunities as the lending market becomes more diverse and can cater to more borrower types.
“Non-banks play an essential role in providing customers with greater choice,” says Igor Stychinsky, general manager at Liberty NZ. “We’re especially well placed to service borrowers with more complex circumstances who cannot be supported by traditional lenders.”
The traditional lending model is shifting as the underlying economy and society evolve.
“Despite a challenging environment with high interest rates, rising living costs and expanding risk appetite from the main banks, non-bank lenders continue to play a vital role in addressing housing affordability and enhancing competition in the mortgage market,” says Ian Boyce, general manager, property, at Avanti Finance.
Reflecting these changes, advisers too are responding to the broader range of lending needs, increasing the profile of the third party channel in line with the lift in non-bank business. “The growing preference for intermediated access to finance is driving innovation and competition, leading to more diverse and customer-centric offerings,” says Campbell Smith, country head of Pepper Money New Zealand.
The overall proportion of lending coming via third party channels has steadily increased. A recent Finance and Mortgage Advisers Association of New Zealand (FAMNZ) report showed that while one in three (35%) of all borrowers had secured their last mortgage through a mortgage adviser, the percentage who did so in the last 12 months had risen to almost one in two (46%). First home buyers were even more likely to go through an adviser, with 59% using one in the last year.
“As the size of this channel overall grows, and obtaining finance remains difficult, we [expect to] see increased business as a result,” says Craig Rolls, director and head of the lending team at Basecorp Finance.
Published 17 Mar 2025
“Non-banks play an essential role in providing customers with greater choice. We’re especially well placed to service borrowers with more complex circumstances who cannot be supported by traditional lenders”
Igor Stychinsky,
Liberty
“Speed of response has become more and more important, especially with complex applications or new customers. This is where non-bank lenders step in to take the lead”
Ian Boyce,
Avanti Finance
“The growing preference for intermediated access to finance is driving innovation and competition, leading to more diverse and customer-centric offerings”
Campbell Smith, Pepper Money
“Unlike the larger, slower-moving big traditional banks, we prioritise transparency and fast decision-making – qualities advisers and their clients value”
Phil Bennett,
First Mortgage Trust
“In a growing market there are more transactions, and in a recessive market there is an increased need for non-bank providers”
Luke Jackson,
Go Lend
“Most advisers are very clued up on non-bank options when bank funding is unavailable, and our industry has successfully built significant awareness of options in our space”
Craig Rolls, Basecorp
Mortgage adviser market share rising
Percentage of new mortgages written by mortgage advisers in the last 12 months
46%
Percentage of new mortgages for first home buyers written by mortgage advisers in the last 12 months
59%
Source: FAMNZ Consumer Access to Mortgages 2024 report
New Zealand
8%
Australia
15-30%
USA
50%
Source: KPMG Financial Institutions Performance Survey, Specialist Lenders Review of 2024
Non-banks’ share of lending markets
Igor Stychinsky
Liberty
Campbell Smith
Pepper Money
Craig Rolls
Basecorp
Luke Jackson
Go Lend
Phil Bennett
First Mortgage Trust
Ian Boyce
Avanti Finance
Industry experts
How specialist lenders are slowly reshaping New Zealanders’ financial options
The great banking alternative
More
In Partnership with
Share
Igor Stychinsky is general manager at Liberty NZ and is responsible for the lending and term deposit operations of the business. He has extensive experience in financial services in New Zealand and internationally. Stychinsky previously held senior management roles at New Zealand Home Loans and Renaissance Investment Management. He holds an MBA from the University of Oxford and a Bachelor of Science from Rochester Institute of Technology.
Liberty
Igor Stychinsky
Campbell Smith is the country head at Pepper Money New Zealand. With over 20 years’ experience in the banking and financial services industry, Campbell has substantial executive leadership, financial and operational experience, having worked in various commercial functions across mortgages and asset finance. In 2022, Campbell joined Pepper Money New Zealand from LeasePlan as director and country manager. He has also worked at organisations including Turners Automotive and Westpac.
Pepper Money
Campbell Smith
Craig Rolls is a director and head of the lending team at Basecorp Finance. He has over 30 years’ experience in the financial industry across many economic cycles and is a well-known industry figure among mortgage advisers.
Basecorp
Craig Rolls
Luke Jackson is CEO of the recently launched non-bank lender Go Lend. Jackson’s experience in the New Zealand finance market spans over 28 years. This initially included a background in corporate, commercial and retail banking within New Zealand major banks. Over the last decade, Jackson has been a senior member of the New Zealand non-bank market. He was instrumental in pioneering the use of peer-to-peer borrowing for secured property loans as CEO of one of the initial platform providers during the early licensing period. More recently, Jackson was general manager New Zealand at one of the publicly listed Australian non-bank mortgage providers.
Go Lend
Luke Jackson
Phil Bennett is head of lending at First Mortgage Trust (FMT). He has a wealth of experience in New Zealand’s banking sector. FMT is New Zealand’s largest specialist lender of first mortgages, providing funds for residential, commercial, industrial and rural investments and developments across the country.
First Mortgage Trust
Phil Bennett
Ian Boyce has over 35 years of experience in financial services, banking and insurance. He has held several senior leadership roles at ASB Bank, driving growth, profitability and strategic initiatives. In November 2022, Boyce joined Avanti Finance as general manager, property. His role, with the support of the wider Avanti team, is to continue the profitable growth Avanti has enjoyed in the very competitive New Zealand property market. Boyce is also one of only 12 New Zealanders named to the prestigious 2024 Mortgage Global 100 list.
Avanti Finance
Ian Boyce
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