Last week’s launch of Yellow Brick Road Term Deposits has sparked a massive reaction from consumers.
The company is the first non-bank in Australia to offer term deposits, and it recognises an immediate opportunity to shake up the banking oligopoly.
“Some commentators have said that independent lenders don’t have a chance at competing with the big banks, which is quite frankly a joke,” says Yellow Brick Road Executive Chairman Mark Bouris. “Others are talking the talk, but we’re walking the walk. We’ve had hundreds of calls, web queries and walk-ins since last Tuesday’s announcement and we don’t plan on slowing down. This goes to show that Australians want and will respond to an alternative to the banks, and we’re going to deliver.”
Yellow Brick Road is continuing to challenge the major banks’ oligopoly with the launch of Yellow Brick Road Term Deposits, making the company the first non-bank in Australia to offer such products.
Yellow Brick Road is taking the government’s call for competition in the banking sector to the streets, creating the opportunity for consumers to have a real choice in how they manage their money. Yellow Brick Road Term Deposits are issued by Gateway Credit Union Ltd, one of the major credit unions and Authorised Deposit-taking Institutions (ADIs) in Australia.
A new entrant in Australia’s home loan market backed by Wizard Home Loans founder Mark Bouris hopes more competition will put pressure on the big banks to keep any interest rate rises to a minimum.
Mr Bouris, the executive chairman of wealth management company Yellow Brick Road, said he was “delighted” to be back in the home loan business.
Yellow Brick Road, formed in 2007, said on Sunday it will begin offering home loan products after teaming up with Gateway Credit Union.
Mr Bouris said the arrival of new players in the home loan market was needed to “keep the big banks honest and ensure that there’s strong competition in the marketplace”.
He said the major banks had been able to raise interest rates without fear of losing market share after most non-bank lenders were forced out of business or taken over as a result of the global financial crisis.
By Jill Fraser
Speaking to Lending Central about his push to benchmark the cost of banks’ wholesale funding Yellow Brick Road chairman, Mark Bouris said that the four majors’ recent move to increase their fixed rate is a worrying sign.
“That tells you they’re taking the view that cost of funds is going to increase tremendously next year,” he said.
Bouris has been maintaining for some time that an industry benchmark should be introduced to track the cost of banks’ wholesale funding.
Last week NAB Chief Executive Cameron Clyne backed Bouris’ proposal.
Bouris spoke to Lending Central about his concept.
LC: What benefits would be derived from publishing a benchmark funding rate for banks?