Lenders fail to change with workforce
OUTDATED bank lending policies have seen millions of Australians rejected on loan applications, researchers claim, while experts say the situation is about to become worse.
A survey of 1002 Australian adults commissioned by Pepper Money revealed 18 per cent had been rejected for loans, or 3.6 million people when weighted against the population.
Of these, 26 per cent were either self- employed or worked on a casual or freelance basis.
Social demographer Mark McCrindle said the revolution of the modern workforce and the emergence of the “gig economy”, where people earn occasional income from job aggregators such as Uber or Airtasker, meant more Australians would be affected.
“We are only on the cusp of the gig economy,” he said.
“People no longer have the normal structures or box ticking in place that banks rely on.
“ABS data shows that, while unemployment remains generally unchanged, growth in full- time roles has been flat.”
Pepper Money’s Mario Rehayem said: “Banks rely on a computer to assess a customer’s needs, but no computer can understand what kind of life event a human has endured.”