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Home loan customers slowly moving away from big-four banks

Home loan customers slowly moving away from big-four banks
Date of Publication: Tuesday, 07 January 2014 16:07

The big banks are not having everything their own way, with statistics showing that more customers chose alternatives to the big banks when arranging their home loans last year.

 

Though the “big four” – ANZ, Westpac, National Australia Bank, and Commonwealth Bank – continue to dominate the mortgage market, there are some signs that consumers are prepared to look elsewhere for better deals.

 

Figures from the Australian Prudential Regulation Authority show that the collective market share of the big four fell to 84.5% in November 2013, from 85.3% at the same point in 2012.

 

The increase in market share occupied by smaller lenders suggests that stronger competition has helped to alert consumers to what our providers are offering.

 

Phil Naylor, chief executive officer at the Mortgage and Finance Association of Australia, described the big four’s total share of the home loan market as “still extraordinarily high”.

 

However, he said it was “good news” that smaller lenders were beginning to make inroads into the market, after conceding a large chunk to the big banks between 2011 and 2012.

 

But consumers seem more settled with their home loan choices as rates are kept low by the increased competition and a succession of interest rate cuts.

 

The large market share occupied by the big four is supported by a satisfaction rating among home loan customers of just below 80%.

 

Though this falls below the overall average – registered at 81.3% by Roy Morgan – lower rates and strong internet banking options have been enough to sustain satisfaction ratings at an 18-year high.

 

James Booker
Which4U

 

If you enjoyed this article, check out the latest articles on our Finance Blog.

Tuesday, 07 January 2014 16:07
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