Australian Broker forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Coles to use Aussie bank mistrust in financial services foray

Notify me of new replies via email
Australian Broker | 21 Jul 2014, 09:57 AM Agree 0
Coles has said it plans to leverage consumers' loss of confidence in the big banks in its foray into financial services
  • Troy | 21 Jul 2014, 10:13 AM Agree 0
    Seriously! Coles and GE = Trust
  • Trust who | 21 Jul 2014, 10:14 AM Agree 0
    So Coles are going to look after the little guy now? This from the same company that, (allegedly) shafts/squeezes their suppliers. Home loan enquiry to aisle 6 please - still waiting!!
  • Mick | 21 Jul 2014, 10:14 AM Agree 0
    Robb Scott is well off the mark. The GFC caused the exact opposite. A loss in confidence in the non bank or second tier sector, as the sector deserted the market, as a result of funding problems.
  • DanG | 21 Jul 2014, 10:28 AM Agree 0
    With the ACCC keeping a close eye on the Duopoly that exists in Coles and Woolworths and the move to stop them purchasing agricultural land to complete the supply chain in the food market, they've had to look elsewhere to continue to grow this monster.

    With the raw buying power they have, I can't see how their pricing is so similar to other smaller chains.

    In all other countries I've lived, bigger buying power has always related to better prices on the consumer end. Not with Coles.

    Don't expect good value in the finance sector either especially while lined up with GE who have a similar reputation for using marketing tactics rather than savvy pricing to attract new business

  • Wozza | 21 Jul 2014, 10:47 AM Agree 0
    So let's see? Is this the same GE who ran away from the retail lending market when the GFC hit? Now that will build a whole lot of confidence!!
  • Brian Hastings | 21 Jul 2014, 10:48 AM Agree 0
    Coles and GE is going to create confidence....please.....
  • Peter Economos | 21 Jul 2014, 10:56 AM Agree 0
    The GFC nearly wiped out the non banks, they did not see more support Mr Scott. On a lighter note, maybe they will use brokers to generate tons of loans and give us the use of the express lane for checkout :)
  • Denise Brailey BFCSA (Inc) | 21 Jul 2014, 10:59 AM Agree 0
    Rob Scott should be calling me and running the product by our group. We can certainly give tips on how to regain public confidence in lending after the Major Banks have trashed the market place with their deceit and their unwillingness (at executive level) to co-operate with aggrieved customers.
  • A bit worried.... | 21 Jul 2014, 11:12 AM Agree 0
    I think we need to be very concerned. We all know about how the Big supermarkets use 'loss leaders' marketing strategies. They will find a way to provide mortgages cheap, on line & get around the compliance laws while ASIC & other regulators fluff about catch up with this evolving market. They will leveredge off their database & use their already super-duper marketing strategies & budgets to hook consumers in. I agree with every comment, but when its cheap, its cheap & if they can offer savings, & bank-bash they will get traction. No doubt, in time we will have to clean up the mess....again!

  • chrisc | 21 Jul 2014, 11:22 AM Agree 0
    No thanks ... I consult with my reputable finance adviser for that. I'm only here to buy my groceries. Will you pass me the cornflakes please and then leave me alone.
  • Mal Bartley | 21 Jul 2014, 11:22 AM Agree 0
    The future CERT IV = job at Coles checkout!!
    Diploma = maybe :- Deli Manager!!!!

    Uncertain times continue!!!!
  • Tony | 21 Jul 2014, 11:28 AM Agree 0
    Ha Ha Ha Ha Ha .... GE
  • Spud | 21 Jul 2014, 11:49 AM Agree 0
    GE.... classic lol
  • Denise Brailey BFCSA (Inc) | 21 Jul 2014, 11:55 AM Agree 0
    Yes we have plenty of GE Money victims to look after. That is a worry. Problem is there will be more of the same imprudent loans which tarnish the industry whether we wish to see it or not. The solution is to bring the BIG Banks to account and for loan processing to be thoroughly examined by independent body.
    The first lender to start changing their ways will win this battle. Meanwhile lowering of confidence, mistrust of lenders and regulators will continue whilst these unsafe products are marketed. New players in the marketplace need to take a very different approach or its more of the same. We are simply trying to clean up these issues for the purpose of happier consumers by changing the appalling bad habits of lenders.
  • Denise Brailey BFCSA (Inc) | 21 Jul 2014, 12:01 PM Agree 0
    Coles on the wrong track jumping into bed with GE, but they are aggressive with marketing and will try to drive this forward. Robb Scott needs to publicly express how the processing will be different from that used by major lenders and regarding what GE will do about all its "problems" in the past. Those aggrieved mortgage victims will go straight to the media....they can bank on it.
  • Salvatore | 21 Jul 2014, 12:10 PM Agree 0
    It wasn't the Banks that abandoned the consumer and their partners during the early stages of GFC. It was GE which in my humble opinion is carrying a lot of baggage for a company like Coles to get into bed with. Don't you think?
  • A bit worried.... | 21 Jul 2014, 12:35 PM Agree 0
    Did some one ask how Coles will process these loans.... two words for you kids....
    .....OFF SHORE......
  • Denise Brailey BFCSA (Inc) | 21 Jul 2014, 02:14 PM Agree 0
    Yes indeed what on earth is Coles jumping into bed with GE Money - who approved loans in bad faith. Maybe a case of birds of a feather. If Robb Scott calls me and explains how the paperwork will be handled in approval of loans, we will soon know will we not?
  • No time like the future | 21 Jul 2014, 02:17 PM Agree 0
    Coles and Woolworths suffer a trust deficit already.

    But Australians have form in falling for hype and bullsh*t so my money is on Coles succeeding.

    But it will force the banks to shape up.
  • Sunil | 21 Jul 2014, 04:16 PM Agree 0
    The most scary thing for us brokers is the marketing front, (the back end funding area they might be able to replace any time without much dramas, if the need demands it).....Coles/other super markets...have excellent consumer behavior models which helps them target customers at the right timing, for example they can be almost 80% sure that a customer has moved to a new locality when the store the customer is using has changed...and then they can target the customer 3-4 years down the line with a targeted refinance deal, couple that with flybuys and discount petrol and other marketing gimmicks....and credit file access by offering them credit cards with zero profit....we will end up loosing some of the market share for sure....
  • Denise Brailey BFCSA (Inc) | 22 Jul 2014, 02:26 PM Agree 0
    Any Lender resorting to outsourcing loan processing off shore is doomed. Consumers will never support that method of checking details and would cause more widespread media coverage given the problems we have uncovered to date as a collective issue. Brokers have the power over Lenders - there are more of you and banks cannot sell too much product without you and they love volume. We have seen the bank emails: "pump up the volume."
Post a reply