Major market share falls to five-year low

by Caroline Dann15 Oct 2012

A new study has revealed the majors’ share of the broker channel has dropped to a five-year low.

The report, from Market Intelligence Strategy Centre (MISC) found the percentage had dropped from 
64% in Q2 2011 to 59.8% in Q2 2012, which is the lowest number since 2007.
A spokesperson for MISC told Australian Broker Online the results were not surprising given the jump in popularity of regional banks.
“To a certain extent, regional banks have grown share. This could be to do with the less aggressive nature of the major banks’ activity,” he said.
“Regionals and second-tiers are discounting…The RBA cuts were not passed on.”
The report claimed a ‘major structural change in the broker originated market’ was underway, although the popularity of the majors varied greatly from state-to-state.
There was a modest increase in broker usage of the majors in WA and South Australia, with a 2.5% and an 8.3% growth, respectively. 


  • by Patrick 15/10/2012 10:42:01 AM

    I do not use majors who have minimum volume hurdles as this in my view creates a conflict of interest and therefore a potential for breach of NCCP. Why is it that small buisness people are hounded by the authorities and large companies show contempt and are never brought into line.

  • by JN 15/10/2012 11:43:20 AM

    I'm with you Patrick. As if volume equates with quality anyway..and as for large companies they create behind smoke and mirrors and not at all transparent and yes, never brought into line.

  • by Mark Hewitt 15/10/2012 12:21:38 PM

    This trend is consistent with the latest AFG competition index, published last week. The only difference is that we include the brands owned by the majors in the majors' share of business.