Consumers lament lack of bank competition

by Adam Smith27 Feb 2012

Nearly two-thirds of Australians believe there isn't enough competition in banking, and say they would consider looking outside the majors for a mortgage.

A new survey from Citibank has found 65% of respondents believe the banking sector suffers from a lack of competition. The Citi-Fin Q survey also found Australians gloomy on property prospects, with 63% saying home owneship will be outside the grasp of the next generation.

Citibank director of mortgages Vibha Coburn chose to find positives in the results.

"Despite the doom and gloom from our survey respondents, I believe the fact that Australians will look at mortgage providers outside the big four when choosing their home loan is a positive sign," she said.

The survey also found consumer attitudes toward home ownership are changing. Eleven per cent of respondents said they had moved or downsized in the previous 12 months to lower their expenses, and 62% said that they have adjusted their expectations regarding their "dream home" due to the high cost of housing.

"We're seeing a trend where customers might sacrifice the size of a property to live in a particular location or vice versa. This could mark a return to eras gone by when first homebuyers bought an entry-level property with the aim of upgrading to another, larger property or a property in another area," Coburn said.

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  • by Steve 27/02/2012 12:08:06 PM

    There is less competition now then before the GFC. Many of the brands the consumers seen are subsidiaries of the major 4. Look at Westpac with Bank of Melbourne, Bank SA, St George Bank, Challenge Bank & Ramms - CBA and Bank West, Aussie Home Loans, NAB & Advantage just to name a few.