Lenders fail to change with work­force

Townsville Bulletin - - NEWS -

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.”

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.