Non-bank lenders have suffered significant market share losses during the GFC and many simply went out of business due to lack of funding.
Non bank lenders are slowly regaining market share as rises in interest rates cause borrowers to look for better deals through refinancing.
According to statistics provided by AFG, refinancing accounted for 39% of new business in June, up from 33% for the previous six months, the highest result the group has seen since July 2008.
In general, consumer confidence in non-bank lenders is returning as they are coming up with loan offers which provided better value than the banks.