September 28, 2021

Download PDF

Almost half of personal lending in NZ is financed by non-banks, new data reveals

New data has revealed that Kiwis are embracing choice when it comes to financial services, with almost half of personal consumer lending in Aotearoa New Zealand being financed by non-bank lenders.

The findings were released in the latest Annual Report of the Financial Services Federation (FSF), the industry association representing responsible and ethical finance and leasing companies operating in New Zealand.

This comes after a significant year of growth for the Federation, which has seen a membership increase of 24% in 12 months. Its 81 members include the likes of UDC Finance, Toyota Financial Services, and Pepper Money (see the full list here).

The data was collected in an FSF member data-gathering exercise performed by KPMG and shows 47% of personal consumer lending (non-mortgage) in New Zealand is financed by the non-bank sector represented by FSF members.

“While the Financial Services Federation does not offer membership to all non-bank lenders, the growth in membership means we’re likely looking at the most complete non-bank lending data available to date in New Zealand,” says FSF Executive Director Lyn McMorran.

“It solidifies what we have already known for a long time, that the non-bank sector is seeing remarkable growth and has established itself as a compelling alternative to traditional banks for both consumer and business lending alike.”

Responsible lending insights were also revealed in the data, showing a 24% decrease in customer arrears from 5.8% in 2016 to 4.4% in 2021.

“We were pleased to see an overall loan approval rate of 55%, which shows that our members are demonstrating careful consideration to ensure loans are provided responsibly and on a ‘quality over quantity’ basis”.

The Financial Services Federation’s Annual Report FY20/21 can be viewed here.


For all media inquiries please contact Hannah McKee | Marketing, Communications, and Events Manager | Financial Services Federation |

MoST Content Management V3.0.8328