Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Major bank market share takes a hit

 percent   percent
Reporter 4 minute read

Fresh figures from a major aggregator have revealed that the third-party mortgage market share of Australia’s major banks has fallen to a post-GFC low.

The latest AFG Competition Index found that major lender market share has “taken a hit”, falling to 62.5 per cent in the final quarter of 2017.

The index showed that the majors lost ground in all home lending categories, including a 4 per cent reduction in refinancing and a 2 per cent fall in fixed rate mortgages.

AFG general manager of broker and residential Mark Hewitt attributed the decline to increased scrutiny being placed on the major banks that has culminated into a Royal Commission.

Advertisement
Advertisement

“The major banks have been under intense scrutiny by government and the regulators and it is probably no wonder if they have been distracted,” Mr Hewitt said.

“With the recently announced Royal Commission into the banking sector, we all hope lenders can respond while still maintaining a focus on their customers.”

Mr Hewitt added that the Royal Commission, and the industry as a whole, should “focus on how competition can be further improved” and should also include “the impact that the government guarantee has on competition”.

Westpac was the only major bank to increase its market share, from 19.19 per cent to 20.33 per cent.

ANZ suffered the largest market share reduction among the major banks, falling by 3.5 per cent.

PROMOTED CONTENT


The Competition Index figures also found that non-major banks have a market share of 37.43 per cent, with both Macquarie Bank and AFG growing their share of broker-originated mortgages.

“The non-majors picking up market share were Macquarie, with an increase from 2.91 per cent to 4.70 per cent, and AFG Home Loans, with a lift from 8.88 per cent to 10.15 per cent,” Mr Hewitt noted.

[Related: AFG highlights ‘significant scrutiny’ on banking industry]

Major bank market share takes a hit
 percent
TheAdviser logo

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

 percent

 

more from the adviser
handshake 2

Breaking News

Former Westpac head of third party to lead BOQ business bank

The non-major bank has announced the appointment of a former West...

drought

Breaking News

Climate change threatens property values: RBA

A number of regions could see a material decline in housing price...

empty wallet

Breaking News

22% of investors say they’re unable to refinance

A fifth of investors are unable to refinance at an amount they w...