La Trobe Financial celebrates 70 years
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In a changing world, the selfless motto that underpins the non-bank’s success remains a timeless ideological lodestone guiding it into the future
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RURAL VICTORIA in the early 1950s was a hardscrabble place with a lot of potential.
When Ray O’Neill looked around the small town of Traralgon at the people trying to eke out a living there, he decided to make the uniquely ANZAC motto of “others before self” the driving philosophy behind his new lending institution, La Trobe Financial.
After serving in World War II, he understood the sacrifices soldiers had made and knew they were a solid prospect despite not meeting traditional criteria at established lenders.
“[He] set about creating borrowing opportunity for underserved borrowers, often servicemen, who the bigger banks would not consider,” says La Trobe Financial CEO Chris Andrews.
“He was alert to the uncertainty in the community.”
As one of Australia’s leading credit asset managers specialising in asset management and credit, La Trobe Financial is committed to making a positive impact on its community. With seven decades of proven credit management behind it, La Trobe Financial has funded over $36bn of investment for more than 229,000 customers. Its investors include large global institutions, Australia’s major banks, family offices, fund managers, and 55,000 everyday investors in its award-winning credit fund. La Trobe Financial is driven by one cause – to place “others before self” and make a positive impact by helping people create wealth with specialist and investment solutions.
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“Our 200-strong credit team work relentlessly. They leave no stone unturned, finding the information required to provide customers the answers they need”
Chris Andrews,
La Trobe Financial
It’s a powerful backstory that resonates 70 years later with the crucial backstop role that non-banks now play in the Australian economy as it enters a testing period: if you don’t tick the regular boxes, you still have lending options.
For La Trobe Financial, the road from its launch in 1952 to 2022 has had its ups and downs. In the early days, the non-bank offered just the three core lending products of full-doc, rural and construction loans – all of which are still available today.
Over the past 40 years, La Trobe Financial has added 12 further lending products across its residential and commercial sectors.
“These innovations, including pioneering the first Lite Doc® loans, have continued the legacy of delivering human solutions for underserved borrowers with complex financial challenges,” says senior vice president and chief lending officer Cory Bannister.
Andrews says La Trobe Financial has weathered tough conditions in the past, and the current economic challenges are no different.
“Through the hard times, whether that be recession, the GFC, COVID or, most recently, destructive floods, the business has continued to grow”
CORY BANNISTER,
LA TROBE FINANCIAL
“Through the hard times, whether that be recession, the GFC, COVID or, most recently, destructive floods, the business has continued to grow,” he says.
There are a number of reasons.
Andrews cites funding diversification that has de-risked the portfolio and differentiated La Trobe Financial from the competition, as well as the diligence and discipline of its credit process. Last but not least is the great care the firm has demonstrated to support its staff, customers, financiers and investors.
An accelerating future
The pace of change has been relentless, especially over the last two years.
“Each year, we are serving more people through new relationships and territories, with an expanded offering,” says Andrews.
“We’re not expecting this pace to slow down either.”
He points to the company’s recent strategic partnership with Canadian firm Brookfield Asset Management. This deal will open up further product opportunities and new territories for La Trobe Financial as well as expand its customer base.
The move comes at a crucial time for the financial industry as non-banks step up.
Bannister sees non-banks becoming even more broadly accepted by consumers over the year ahead as mainstream institutions gradually pull back.
“The current economic and regulatory conditions are expediting the shift in the immediate term, and in our view, this is likely to be the catalyst for longer-term growth in the sector,” he says.
Consumer sentiment towards non-banks will be underpinned by future generations choosing performance over historical allegiance, as well as by product availability.
Banks, on the other hand, will continue to “simplify” their product offerings and adjust to the need for more detailed, and often manual, credit assessment techniques that most non-banks have always adopted, Bannister says.
This is happening in both their wealth management and mortgage lending operations, which has caused cautiousness and frustration among many consumers.
“Several segments of the lending landscape have been left with little support or credit availability at a critical time for the Australian economy,” says Bannister.
He puts the size of the retracement of available credit by the banks somewhere between $100bn and $125bn per year, including in the commercial lending market.
“Lenders, including second-tier banks, credit unions, non-banks and new fintech banks, are all stepping in to fill the void for customers that would ordinarily be taken up by the major banks.”
The pandemic has only accelerated this trend.
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“Through the hard times, whether that be recession, the GFC, COVID or, most recently, destructive floods, the business has continued to grow”
“Through the hard times, whether that be recession, the GFC, COVID or, most recently, destructive floods, the business has continued to grow”
“Our 200-strong credit team work relentlessly. They leave no stone unturned, finding the information required to provide customers the answers they need”
In a changing world, the selfless motto that underpins the non-bank’s success remains a timeless ideological lodestone guiding it into the future
In a changing world, the selfless motto that underpins the non-bank’s success remains a timeless ideological lodestone guiding it into the future
What else happened in 1952?
Queen Elizabeth II was crowned
ANZUS Treaty between Australia, New Zealand and the United States came into force
Summer Olympics were held in Helsinki, Finland
The first British nuclear weapon was detonated in Australia,
making the UK the third
nuclear weapons state
Argentine First Lady Eva Perón died of cancer at age 33 and went on to achieve saintly status in Argentina
General Dwight D. Eisenhower won the US presidential election
Source: Wikipedia
People helping people
Bannister also credits the people at La Trobe Financial with its remarkable record.
“Our 200-strong credit team work relentlessly,” he says. “They leave no stone unturned, finding the information required to provide customers the answers they need.”
Keeping track of the broad range of lending options and how they best fit different customer needs can be a challenging task.
“It’s no mean feat and certainly no accident that when you speak to our team they are versed in each product and areas of the market it serves,” says Bannister.
Even the lender's use of technology emphasises the people involved in the process.
Number of La Trobe Financial clients since 1952
229,000
“Our 200-strong credit team work relentlessly. They leave no stone unturned, finding the information required to provide customers the answers they need”
Cory Bannister, La Trobe Financial
“Our view of technology is that it always complements rather than replaces our personalised service, as opposed to how a bank might operate.”
The pandemic has also led to the introduction of a range of technologies to make the lending process smoother, and borrowers can expect faster answers, greater transparency and better access to
La Trobe Financial services in line with several further upgrades later in the year.
La Trobe Financial is also making a push on its specialist lending capability in the months ahead.
“[This], combined with the power of our Credit Fund, allows us to service complex and commercial lending at values that others struggle to compete with,” says Bannister.
There are not many institutions that have survived nearly three quarters of a century and are still inspired by the original philosophy behind their founding.
Andrews says the day of the 70th anniversary on 6 August will be a humble occasion, when the business will reflect on the values that led it to this point with celebrations to support the community.
“Our philosophy of ‘others before self’ and the legacy it’s built is not lost on us,” he says.
As La Trobe Financial soldiers on into the 2020s, the chances are that its founding ethos will continue to shine through and give customers who might not otherwise have access to finance a fighting chance.
Source: La Trobe Financial
“Through the hard times, whether that be recession, the GFC, COVID or, most recently, destructive floods, the business has continued to grow,” he says.
There are a number of reasons.
Andrews cites funding diversification that has de-risked the portfolio and differentiated La Trobe Financial from the competition, as well as the diligence and discipline of its credit process. Last but not least is the great care the firm has demonstrated to support its staff, customers, financiers and investors.
People helping people
Bannister also credits the people at La Trobe Financial with its remarkable record.
“Our 200-strong credit team work relentlessly,” he says. “They leave no stone unturned, finding the information required to provide customers the answers they need.”
Keeping track of the broad range of lending options and how they best fit different customer needs can be a challenging task.
“It’s no mean feat and certainly no accident that when you speak to our team they are versed in each product and areas of the market it serves,” says Bannister.
Even the lender's use of technology emphasises the people involved in the process.
“Our view of technology is that it always complements rather than replaces our personalised service, as opposed to how a bank might operate.”
The pandemic has also led to the introduction of a range of technologies to make the lending process smoother, and borrowers can expect faster answers, greater transparency and better access to
La Trobe Financial services in line with several further upgrades later in the year.
La Trobe Financial is also making a push on its specialist lending capability in the months ahead.
“[This], combined with the power of our Credit Fund, allows us to service complex and commercial lending at values that others struggle to compete with,” says Bannister.
There are not many institutions that have survived nearly three quarters of a century and are still inspired by the original philosophy behind their founding.
Andrews says the day of the 70th anniversary on 6 August will be a humble occasion, when the business will reflect on the values that led it to this point with celebrations to support the community.
“Our philosophy of ‘others before self’ and the legacy it’s built is not lost on us,” he says.
As La Trobe Financial soldiers on into the 2020s, the chances are that its founding ethos will continue to shine through and give customers who might not otherwise have access to finance a fighting chance.
“Through the hard times, whether that be recession, the GFC, COVID or, most recently, destructive floods, the business has continued to grow,” he says.
There are a number of reasons.
Andrews cites funding diversification that has de-risked the portfolio and differentiated La Trobe Financial from the competition, as well as the diligence and discipline of its credit process. Last but not least is the great care the firm has demonstrated to support its staff, customers, financiers and investors.
People helping people
Bannister also credits the people at La Trobe Financial with its remarkable record.
“Our 200-strong credit team work relentlessly,” he says. “They leave no stone unturned, finding the information required to provide customers the answers they need.”
Keeping track of the broad range of lending options and how they best fit different customer needs can be a challenging task.
“It’s no mean feat and certainly no accident that when you speak to our team they are versed in each product and areas of the market it serves,” says Bannister.
Even the lender's use of technology emphasises the people involved in the process.
“Our view of technology is that it always complements rather than replaces our personalised service, as opposed to how a bank might operate.”
The pandemic has also led to the introduction of a range of technologies to make the lending process smoother, and borrowers can expect faster answers, greater transparency and better access to
La Trobe Financial services in line with several further upgrades later in the year.
La Trobe Financial is also making a push on its specialist lending capability in the months ahead.
“[This], combined with the power of our Credit Fund, allows us to service complex and commercial lending at values that others struggle to compete with,” says Bannister.
There are not many institutions that have survived nearly three quarters of a century and are still inspired by the original philosophy behind their founding.
Andrews says the day of the 70th anniversary on 6 August will be a humble occasion, when the business will reflect on the values that led it to this point with celebrations to support the community.
“Our philosophy of ‘others before self’ and the legacy it’s built is not lost on us,” he says.
As La Trobe Financial soldiers on into the 2020s, the chances are that its founding ethos will continue to shine through and give customers who might not otherwise have access to finance a fighting chance.