Bank calls for more transparency amid Aussie/CBA review

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Bankmecu is pleased with confirmation from ACCC that it will examine the “competitive effects” of CBA’s plan to increase its ownership in Aussie Home Loans and has renewed its call for greater transparency around sub-brands.

The bank’s acting CEO, Robert Allen, says the proposed acquisition further illustrated the need for greater transparency when it comes to the multi-brand strategies being pursued by the country’s major banks.

“There is growing concern that the major banks are creating a veneer of competition through their ownership of various sub-brands, such as Aussie Home Loans.”

As reported in Australian Broker in December, Bankmecu issued a letter to Treasurer Wayne Swan, calling on the federal government to deliver on its promise to increase competition and choice in banking for Australian consumers.

“We’d like to see the government require banks to prominently disclose ownership of wholly owned subsidiary sub-brands in their advertising. All Aussie Home Loan’s advertising should make it clear to consumers that their majority owner is the Commonwealth Bank. These facts will better enable consumers to make informed decisions about their banking.”

Allen says a survey of more than 1,000 Australians conducted by Bankmecu earlier in the year showed 74% would support requiring banks which are wholly owned by other banks to disclose their ownership in their advertising.

“This is another simple step government can take to deliver on its promise to ensure that there is greater competition in the Australian banking market.”

  • Tom on 19/01/2013 10:54:35 PM

    WE, "the face to face broker" are the ones who provide the transparency and solution for the client. Comm bank should make little difference to how the Aussie people conduct themselves.
    I am told both Symond heavy's are staying on and in my experience working for them in the past, if they remain, the model and customer is as safe as houses.

  • Bert on 17/01/2013 11:22:44 PM

    How about the ACCC investigate Woolworth s and Coles for their trade practices.
    They have a much bigger day to day impact on the community than whether or not a major lender takes a commercial decision to invest in a very successful business. There is a huge difference in the service proposition provided by any bank than that provided by a competent broker!

  • Wozza on 17/01/2013 12:29:30 PM

    As an long term Aussie broker, I certainly hope not and neither do I think it will happen

  • 1martym1 on 17/01/2013 11:24:09 AM

    Do you think they are looking to do a RAMS type thing with Aussie brokers selling CBA funded Aussie loans? Me thinks so.

  • Diomedes on 17/01/2013 11:07:05 AM

    Where are the other lenders with an opinion on this important subject. ING, AMP, Heritage, Suncorp etal are you guys awake? Are you going to send a submission to the ACCC?

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