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

Lazy banks and apathetic borrowers: Why 0.20% isn't good enough

Notify me of new replies via email
Australian Broker | 10 Dec 2012, 07:00 AM Agree 0
One aggregator's executive chairman has stepped forward, calling the big banks "lazy" in the face of weak competition – and says brokers need make sure they're doing their part
  • ozboy | 10 Dec 2012, 08:57 AM Agree 0
    Totally agree however I feel you are talking to "the hand".
  • Larz | 10 Dec 2012, 10:26 AM Agree 0
    Mark is spot on with his comments. Unless there is competition from the smaller banks and non banks then the majors will keep increasing their margins. The govenrment talks about competition but they smashed the competition when they banned exit fees. The non banks can no longer compete and their market share has decreased from approx 15% at its peak to around 1%. The Government was warned that this would happen but they refused to listen and the general borrowing public now have to pay the price.
  • BONED | 10 Dec 2012, 10:44 AM Agree 0
    "Brokers need to be mindful of making sure we’re supporting the second and third tear banks and non-banks, so long as it’s appropriate for the customer.” And here lies the problem... so long as it IS appropriate for the consumer, and in many cases the 2/3 tiers and non-banks are too restrictive when it comes to many parameters and the long term (lending) future of the Client in mind. It's important to remember that these Lenders aren't that competitive in a lot of cases either, so your support of them would have to be questioned in many cases.
  • Steve | 10 Dec 2012, 11:03 AM Agree 0
    The reserve bank know this & have been cutting the cash rate by more than usual, so I don't feel borrowers can feel too ripped off. If the banks passed on all the rate cuts in full, then the official cash rate would be higher. Also, deposit rates haven't been coming down in lockstep with the cash rate due to competition for deposits.
  • ozboy | 10 Dec 2012, 11:28 AM Agree 0
    Hi Steve good take on the argument, care to comment on Credit Card rates and their lack of decline?
  • Steve | 10 Dec 2012, 11:45 AM Agree 0
    Yes of course credit card interest rate payers are getting ripped off, no question. Bank profitability is another issue entirely & as your mention - we are talking to the hand for sure.
  • Qld Broker | 10 Dec 2012, 01:36 PM Agree 0
    Agree with "Boned". I for one really do want to support the third tier lenders (already support a lot of the second tier lenders). But their overall proposition falls short of what I would call a complete package. If they really want to obtain market share this really needs to be looked at.
  • Borrower | 11 Dec 2012, 10:43 AM Agree 0
    1. RBA moves Cash rates lower, to stimuilate economy.
    2. Big Four lick their lips and say "we'll have 20% of that, thanks!"
    3. RBA says, "Hmm, we'll just have to go lower still"
    (repeat steps 2 & 3)
    Is that it Steve?
Post a reply