Responsible Lending and Borrowing Summit
22nd-23rd May, 2023
RFI Global’s Kate Wilson, will be presenting at the Responsible Lending and Borrowing Summit on the 22nd of May.
The impact of 10 consecutive cash rate increases has already been felt by many Australians, and the looming ‘fixed rate cliff’ will only compound this. RFI has been tracking the impact of rate rises and inflation on borrowers so far and has found significant increases in anticipated mortgages stress since rate rises began. This session with dive into how borrowers are currently feeling, with a particular focus on how fixed rate customers nearing the end of their term will react to the higher rate environment.
Our Solutions
Australian Mortgage Solution
RFI Global’s Australian Mortgage Solution unlocks valuable insights into the preferences, experiences, and satisfaction levels of mortgage holders. The tailored data and market intelligence provides a comprehensive understanding of customer advocacy and switching propensity, along with client-specific insights such as competitor benchmarks and NPS. With this solution, you can gain insights into optimising the customer experience, increasing customer retention, and driving new customer acquisition.
Latest Insights
Data Breaches And Financial Fraud
Recent data breaches have sparked concerns about fraud and data security in Australia. Institutions, including financial service providers, must address customer trust and expectations while balancing security measures and user experience in digital banking.
RFI - In the Know: Trust, Fraud and Data
Explore the impact of data breaches and financial fraud on customer trust in Australia. Join Kate Wilson as she delves into trust issues, fraud trends, customer behavior shifts, and advice for banks.
Mortgage Stress: Prepare for Impact
Explore the impact of data breaches and financial fraud on customer trust in Australia. Join Kate Wilson as she delves into trust issues, fraud trends, customer behavior shifts, and advice for banks.
RFI - In the Know: Mortgage Stress
Mortgage stress is driving changes in consumer behavior worldwide due to increased cost of living. Kate Wilson reveals how lenders can mitigate risks and seize opportunities for acquisition and retention.
In the Press
Media Coverage on Australian Renters
Media round up on RFI Global's Press Release on Australian renters are struggling - but going under the radar due to focus on mortgage borrowers.
Australian Renters are struggling
Read RFI Global's latest Press Release on how Australian Renters are Struggling.
Media Coverage on Australian Mortgage Stress
Media round up on RFI Global's Press Release on Mortgages in Australia.
Mortgages in Australia
Read RFI Global's recent Press Release on how Mortgage stress in Australia remains as a hot topic as rates rise.
Alex Boorman from RFI Global sheds light on the challenges renters face in today’s housing market. Their research indicates that due to high rent prices, renters struggle to save for a deposit and enter the property market. Over the last year, capital city rents have increased by approximately 10%, and renters have only managed to raise their savings by roughly $5,000, compared to the $20,000 of mortgage holders.
Alex sees these challenges as an opportunity for lenders to address the needs of renters who will eventually become homeowners. By providing low deposit products and educating potential first-time buyers on the home buying process, lenders can forge long-lasting relationships with this significant customer segment.
Additionally, Alex proposes that collaboration between the government and lenders could alleviate some difficulties experienced by renters. As the forthcoming budget may have provisions focused on lower-income groups, this collaborative effort could be crucial in assisting renters in entering the housing market.
Watch the full video here.
RFI Global’s Kate Wilson sat down with Auzbiz TV to address concerns about mortgage stress among households, as interest rates continue to rise. RFI Global’s research reveals that 31% of consumers are worried about making their mortgage payments in the next 12 months, which is a 9% increase since December. This is due to escalating rates, living costs, and uncertainty about future rate hikes.
Kate highlights that borrowers whose fixed-rate term ends in the coming year are particularly at risk, with 43% experiencing mortgage stress as the fixed rate reset approaches. Despite savings accumulated during the pandemic, one in five mortgage clients have less than three months’ worth of repayments in savings.
Kate predicts a competitive banking environment in the latter half of the year, as one in three fixed-rate customers plan to refinance. She suggests that lenders should consider strategies to assist customers in this situation, as the full impact of rate hikes on household budgets is not yet known. With many customers considering switching lenders for better deals, it is essential for banks to engage proactively in conversations and provide competitive alternatives to reduce the risk of losing customers.
Watch the full video here.