Lending Disruption - Fact or fiction?

New entrants challenge incumbent banks across consumer and business lending with gross written volumes exceeding A$1B.

Adrian Bunter · Venture Insights1 July 2017Period: July 20178 min read

Last updated 10 June 2026

$2.6T→

Total business and consumer loans outstanding in Australia

A$1B↑

Gross written loan volumes already exceeded by new entrants

Locked

+2more stats

Companies covered:ANZCBAWestpacNABAfterPaySocietyOneZipMoneyRateSetterDirectMoneyProspaThe Invoice MarketSpotCapOnDeckMoulaKikkaLibertyFlexigroupMYOB

Abstract

This report analyses the Australian lending market, which is currently ripe for disruption due to a highly profitable oligopoly created by the 'four pillars' policy. With over $2.6 trillion in outstanding business and consumer loans, new fintech entrants are rapidly gaining traction, with gross written loan volumes already exceeding A$1B. The analysis explores the competitive landscape, the sustainability of technology-based cost advantages, and the likelihood of incumbents acquiring successful challengers before facing their own 'Kodak moment'.

Key Takeaways

The Australian lending market is a $2.6 trillion opportunity currently dominated by a highly profitable big four banking oligopoly.
New fintech entrants have already surpassed A$1 billion in gross written loan volumes across consumer and business segments.
AfterPay leads the consumer short-term space with $500 million in written volume and a high-velocity model recycling capital 12x annually.

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Frequently Asked Questions

The threat is substantial as new fintech entrants have already exceeded A$1B in gross written loan volumes. These challengers are targeting a highly profitable oligopoly that currently controls a $2.6 trillion pool of outstanding business and consumer loans.

AfterPay is the frontrunner with $500M in cumulative loan volume and a highly efficient model that recycles capital 12 times annually. SocietyOne and Prospa follow with $312M and $250M in cumulative volumes respectively, though no single player has yet achieved dominant scale.

Most challengers are currently exploiting the operational inefficiencies of incumbents rather than building a sustainable technology-based moat. Consequently, the most successful of these firms will likely be acquired by the 'four pillars' banks rather than displacing them entirely.

Lending Disruption - Fact or fiction?

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