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BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.


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BFCSA: Australian Banks and Bankers are too addicted to property

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Australian Banks and Bankers are too addicted to property

Australian Financial Review Mar 27, 2019 3.54pm

James Frost


Australian bankers have all but lost the skills to be able to lend money to the engine room of the economy with small to medium businesses proving too difficult to understand for the vast number of business bankers.

Joseph Healy, former NAB banker and co-founder of challenger SME lender Judo Capital, said Australian bankers were addicted to property saying they would prefer to lend to a customer buying a holiday home than an entrepreneur who is going to hire 10 people.

“You’ve got a generation of bankers who have lost the ability to bank SMEs. They know how to bank real estate because of LVR (loan-to-value ratio) ... but in the middle the heartland of the economy, the knowledge is insufficient.”

On Wednesday, Judo's Mr Healy said it was the fault of the regulator's risk weighted asset policy which overly favoured property over higher risk enterprises such as small businesses and said it needed to be overhauled if the bottleneck was to be solved.

NAB’s chief customer officer for business banking Anthony Healy, who operates Australia’s biggest SME lending operation is among the candidates for the vacant CEO role at the bank, said that while the abundance of data available today was of assistance that bankers needed to have proper relationships with the client.

“It’s not paint by numbers, you really have to understand the client” Mr Healy said. “I do agree with Joe that over time the industry did default to capital.”

During the panel discussion at The Australian Financial Review Banking & Wealth Summit,  Beau Bertoli, CEO of online lender to small business Prospa, said he was bemused by a discussion about hiring bankers saying the only bankers his business employed were in the treasury department.

“We don’t hire bankers “ Mr Bertoli said. “We go hire people from like Airbnb, people who know how to build front end interfaces.”

Australian Small Business and Family Enterprise Ombudsman Kate Carnell said a senior banker at a big four institutions admitted it had lost the skills to assess creditworthiness of large numbers of small businesses because they were too varied and they no longer had the same levels of staff.

Ms Carnell said NAB and Commonwealth Bank were making progress on the issue but chastised the other banks.

“This is real and it’s really important that the other banks get off their backsides and make it happen” Ms Carnell said.

On Tuesday Westpac’s head of business banking David Lindberg kicked off a national debate about responsible lending when he said lending to small businesses had all but ground to a halt.

Mr Lindberg pointed the finger at falling house prices, responsible lending obligations and over-zealous bankers fearful of making a mistake.

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