3 August 2018
Australian banks welcome competition and compete not only through price, but through constant innovations to product features and experiences. Banks are constantly working to ensure customer satisfaction and the availability of quality products.
The Productivity Commission’s report highlights that competition among financial providers is increasing, noting the presence of new market entrants, the positive impact of mortgage broking and the improvement of technology.
Mortgage lending products are highly competitive, with 141 authorised financial providers (ADIs) offering products to suit varied consumer needs. Banks also offer Australian households innovative features and services at competitive prices.
That competition has seen one in five of us switch accounts over the past year.
The ABA believes strongly that competition will improve further with the introduction of Open Banking, Comprehensive Credit Reporting and regulatory reforms to further reduce barriers to new entrants.
In addition, the new ASIC approved Banking Code of Practice has specific requirements regarding transparency and providing information to consumers to help them be better informed.
The Australian Banking Association and its members look forward to considering the Productivity Commission’s report and findings in full.
Contact: Kelly Stevens 0475 741 007
“…banks can go back to their normal processes and that is working out what’s right for every single customer, on an individual tailored basis with a proper assessment. That is the best thing for the customer.”
Access to credit opens up opportunities and fulfills aspirations. Getting it right requires the right balance between consumer protections and the flow of credit.
Interviewed by AM’s Peter Ryan, ABA CEO Anna Bligh talked about the substantial drop in loan deferrals since their peak during the pandemic, falling from 900,000 to 300,000.