Established banks are poised to lose more clients over FinTechs when open banking fully comes to play
Pure Property Investment director Paul Glossop talks about his love of surfing and how it makes him a better person
- 2018 Commercial Lenders Roundtable
- Top 10 Brokerages 2018
- 2018 Brokers on Aggregators
In this month's Career Path, see how Credit Connect's director got to where he is today
1992: Starts lending at law firm
Peter Benson formed an alliance with a Brisbane law firm sourcing mortgage lending clients and originating finance applications from prospective borrowers. Although the firm had roughly $20m in funds under management at that time, Benson felt he needed to offer something different as borrowers frequently encountered obstacles when they approached mainstream banks.
“We established a business providing complementary offerings and services to the legal clients of the firm.”
2006: Realises Non-bank Dream
Backed up by over 14 years of investment and lending experience, Benson launched his private lending company, Credit Connect. His loan enquiry levels increased on a monthly basis because banks were not lending in the commercial, development and non-residential markets, and they only offered residential interest-only loans.
“As director, my initial job when Credit Connect first started was to source clients who were interested in investing in secured first mortgage lending, and to establish proper distribution channels.”
2008: Sails through GFC
The GFC struck two years after Credit Connect began operating. But amid heightened uncertainty and market volatility, Benson’s young firm continued to prosper.
“During the GFC, Credit Connect wrote a lot of business as banks had stopped lending. But even with property values declining, no investor client incurred a capital loss with Credit Connect loans.”
2017: Lends support across continents
Benson currently serves as director of Credit Connect Finance (CCF), an entity of the Credit Connect Group that operates as a private lender and licensed credit provider. CCF was established in 2006 to facilitate consumers whose loans fell under the credit score.
“CCF now predominantly lends to non-residents of Australia who are based in China and seeking financial assistance so they can purchase or invest in Australian properties.”
2019 and beyond: Launches in Sydney
Benson and his team opened a second office in Sydney in the hope of growing their staff and connecting to more borrowers and investors. Since its launch, Credit Connect Group has underwritten more than $380m in secured loans, ranging from $50,000 to more than $25m.
“If we can write $100m in new loans via the Sydney office, that will be a great accomplishment”