INTRODUCTION

Over the course of 2020, the Australian Securitisation Forum (ASF) and Perpetual have collaborated on this comprehensive study of securitisation industry participants’ views of the emerging industry landscape in the new decade.

After a strong start, 2020 has been a tumultuous year for the global financial system, the Australian economy as well as the securitisation industry, both locally and overseas. With its strong fundamentals, the Australian securitisation market has proved to be remarkably resilient and securitisation continues to have an important role to play, particularly with the involvement of smaller lenders who predominantly provide consumer and business finance.

THE STUDY

The rise of non-bank lenders, FinTechs, diversification and innovation are all likely to alter the shape of the industry in coming years and this study has been designed to provide this insight into how these factors might impact the industry.

In January and early February this year we spoke to a wide range of securitisation industry participants including CEOs, Treasurers, CFOs, Head of Funding, Head of Credit about the decade ahead, innovation and the rise of FinTechs and NeoBanks. Following the onset of the pandemic, it was decided to pause the study and take stock. We have since followed up with a range of participants to see if the sentiments and thoughts that were prevalent earlier in the year have changed in material ways and what this might mean for securitisation in the coming decade.

The study follows a similar approach to the studies undertaken in the past three years which have focused on local and global securitisation investors and Australian issuers.

The ASF and Perpetual sincerely thank the industry participants who made this report possible. Their time, candid opinions and views are greatly appreciated and lend this report both rigour and insight. Their responses have been relayed liberally throughout the report whilst maintaining their anonymity.

We hope you enjoy the fascinating insights this report provides.

Chris Dalton – Chief Executive Officer, Australian Securitisation Forum

Richard McCarthy – Group Executive, Perpetual Corporate Trust