All eyes are on the National Australia Bank this week following the bank’s expensive and very public “break up” with the other three major Australian banks ANZ, Commonwealth Bank and Westpac. The so-called bank war over mortgage exit fees has one clear aim – to lure customers away from their existing bank. Does that make it a war, or just some long overdue healthy competition? And does it confirm what we all suspected, that the big four up until now, have acted as a cartel?
The Federal Government is as pleased as punch about NAB’s announcement that customers switching their mortgage from a rival bank would have their exit fees covered by NAB, with Federal Treasurer Wayne Swan rightfully taking credit for this development as the Government moves to ban exit fees for good.
What it does indicate is that at least one of our major banks have heard your message loud and clear – you want better banking.
Opinion is divided on whether NAB’s strategy will benefit consumers in the long run, but any reduction in fees is welcome. After all, if anyone can afford to reduce consumers’ costs it’s our banks. Recently Commonwealth Bank and Westpac have reported on their first quarter earnings - both have reported an increase in profit for the quarter and are on track to break records on their full year profits for 2011. Read more »
