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ISCOVER
Staff Reporter
bankmecu has joined opposition to the ACCC’s decision “not to oppose” CBA’s acquiring of Aussie Home Loans.
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Last week, the Australian Competition and Consumer Commission said it would not oppose CBA’s bid to acquire the remaining 67 per cent of Aussie Home Loans.
This decision outraged many in the industry, including Heritage Bank’s chief executive John Minz.
According to Mr Minz, the decision will perpetuate the confusion caused by the big banks’ “multi-branding” strategy.
“This strategy is creating a false impression among customers that there is a high level of competition in the marketplace, but in reality a number of these so-called competitors are actually part of the big banks themselves,” Mr Minz said.
Since then, bankmecu has joined the debate, arguing that there needs to be “greater transparency” around sub-brands.
bankmecu managing director, Damien Walsh said the planned acquisition further illustrated the need for greater transparency when it comes to the multi-brand strategies being pursued by the country’s major banks.
“There is growing concern that the major banks are creating a veneer of competition through their ownership of various sub-brands, such as Aussie Home Loans,” he said.
“We believe this significantly impacts on the ability of consumers to make informed decisions about their banking.
“In a letter to Treasurer Wayne Swan in December, bankmecu called on the federal government to deliver on its promise to increase competition and choice in banking for Australian consumers and we look forward to hearing the treasurer’s views on this important issue.
“We’d like to see the government require banks to prominently disclose ownership of wholly-owned subsidiary sub-brands in their advertising.
“All Aussie Home Loans advertising should make it clear to consumers that their majority owner is the Commonwealth Bank.
“These facts will better enable consumers to make informed decisions about their banking.”
