We asked Sam Burgess, Head of Lending, questions around the lending side of the business.
How is FMT different from other non-bank lenders?
Firstly, FMT has an established team of Business Development Managers (BDMs) located throughout NZ. This geographic coverage sets us apart from other non bank property financiers and allows us a greater level of knowledge of the areas in which lend to.
Another point of difference is our experienced lending team. Our BDMs possess extensive experience in both non-bank and traditional lending markets, which enables them to make informed lending decisions based on their market knowledge.
How does FMT assess and manage risk, and what steps are taken to protect investors’ capital?
As an active manager we are continuously monitoring our loan book and where we see emerging risks in the market, we adjust quickly. This sets us apart from the main banks who are often more reactionary and slower to move.
At a transaction level, our front-line team is supported by a dedicated credit resource and every loan application is reviewed by a credit manager. This segregation of duties reinforces our commitment to quality decision-making.
Not only do we constantly monitor and report internally, but our performance is also scrutinised by independent third parties as we are supervised by Trustees Executors Ltd and Public Trust.
What’s your outlook on the non-bank sector?
There is an ever-increasing need for a robust non-bank market, this is particularly evident as main banks have become more cumbersome in their approach to lending. This is not to say that non-bank lenders like FMT have a greater risk profile, we simply operate with the freedom and resource to make quality pragmatic lending decisions.
While non-bank lending is expanding as a sector it represents a small portion of the total overall lending in New Zealand. Countries such as Australia, the UK and the US are serviced by much larger non-bank markets, showing the potential for growth in New Zealand.
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