Media Release

Australians are the winners as banks battle for market share

  • The monthly Reserve Bank Survey predicted no cash rate change today
  • Competition set to continue as big 4 banks lose market share for home loans but gain share for credit cards
  • Consumers urged to take advantage of competitive deals before rates rise!

August 5, 2014, SYDNEY – One of Australia’s biggest comparison websites is urging Australians to take advantage of the growing competition between financial institutions while they battle it out for market share, following the Reserve Banks’ decision to leave the cash rate unchanged at 2.50 percent today.

The monthly Reserve Bank Survey was accurate once again, with all 20 of the leading economists and experts on the panel – including senior economists from all four major banks – expecting the cash rate would hold today.

The Survey also found that the majority of experts are betting on interest rates to start rising next year, with the cash rate to continue to a “new normal” level of 4 percent.

Michelle Hutchison, Money Expert at said that financial institutions will continue to compete for market share, despite rate hikes on the horizon.

“Our research shows that the power shift between the banks over the past financial year has resulted in more competition, particularly for lending products like home loans and credit cards.

“We found that the big four banks lost market share by 1 percentage point for owner-occupied home loans, while gaining 1 percentage point market share for personal credit cards.

“With home loan rates continuing to fall over the past year and more credit card balance transfer deals than we’ve ever seen, now is a great time to take advantage of the offers available before rates start to rise,” said Mrs Hutchison.

According to a analysis of Australian Prudential Regulation Authority (APRA) data, the big four banks lost 1 percentage point of market share for owner-occupied home loans since July 2013, making up 84 percent out of all banks in June 2014, worth $696.6 billion.

On the flip side, the big four banks gained 1 percentage point in market share for personal credit cards, sitting at 84 percent, worth over $34 billion. The increase in market share could be attributed to more aggressive pricing for promotional offers such as balance transfers, with ANZ for instance, now offering 0 percent balance transfer deals for up to 16 months.

“While the cash rate might remain on hold for now, it’s likely to start increasing next year. And with financial institutions competing harder for your business, it’s worth keeping track of your banking products and make sure you’re getting a good value deal. It can make a big difference to your budget once interest rates rise.”


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The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on's review pages for the current correct values.

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More than 3 million Australians turn to every month to save money, time and make important life choices. We compare virtually everything from credit cards, phone plans, health insurance, travel deals and much more.

Our free service is 100% independently-owned by two Australians: Fred Schebesta and Frank Restuccia. Since launching in 2006, we’ve helped our users make more than 17 million decisions.

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