(28 November 2025 – Australia) East & Partners’ November 2025 research, drawn from interviews with more than 1,200 businesses, shows a market undergoing structural change.
Banks and non-bank providers are competing harder than ever, but customers are becoming less loyal, more demanding and far more willing to switch.
Broker Channel Under Threat From Proprietary Bank ABL?
- Despite an increasing number of mortgage brokers diversifying their offering to include commercial and asset finance, banks are investing heavily in internal processes and digital tech to generate proprietary asset finance growth. The Mortgage and Finance Association of Australia (MFAA) reports that the value of commercial loans settled by mortgage brokers has increased to its highest level on record.
- How will this impact asset financing competitor positioning given the heavy reliance small businesses place on sourcing financing through the broker channel and characteristic “personal touch”?
- Custom East analysis confirms ABL profitability remains historically high in conjunction with low default rates, however will escalating costs for expanding the size and scope of in-house bank channels negatively impact ROI?
Asset Finance Market Consolidation Gathers Pace
- With customer switching intent running at record highs, how will customers respond to the rising incidence of mergers, acquisitions and divestment taking place in the asset finance sector headlined by BoQ offloading its A$3.8 billion equipment loan book featuring medical assets linked to its prior Investec acquisition?
- Resimac’s acquisition of Westpac’s auto finance unit for A$1.6 billion, Thorn Group’s A$136 million equipment loan portfolio and CHG-MERIDIAN acquiring Maia Financial in 2024 headline the rising incidence of consolidation taking place. CHG-MERIDIAN reported strong growth in lease originations and pre-tax profit in H1 2025 underpinned by growing demand for circular technology solutions. A slight dip in relationship share this round suggests competition is intensifying, reflected in rising competitor pitching by CBA and Westpac in particular as the Banks compete hard for the #1 business banking mantle held by NAB.
Technology Receptiveness Relies on Human Touch
- Time poor CFOs and corporate treasurers are drawn to asset financing offerings that reduce their administrative burden, particularly for onboarding and what should be routine refinancing processes.
- Banks are responding in kind, highlighted by CBA recalibrating its asset finance offering to enable fast-tracked approvals and streamlined documentation. The group now allows qualifying Micros and SMEs to apply for car and equipment finance valued up to A$500,000 with no additional documentation required.
- With an increased prevalence of AI in back office and loan assessment operations, customers continue to highlight the importance of a “name to a face” for detailed advice and guidance, stressing the importance of rolling out new digital tools with appropriate RM and service support.