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Financial Assistance Hub

Response to Productivity Commission final report

3 August 2018

Australian banks welcome competition and compete not only through price, but through constant innovations to product features and experiences. Banks are constantly working to ensure customer satisfaction and the availability of quality products.

The Productivity Commission’s report highlights that competition among financial providers is increasing, noting the presence of new market entrants, the positive impact of mortgage broking and the improvement of technology.

Mortgage lending products are highly competitive, with 141 authorised financial providers (ADIs) offering products to suit varied consumer needs. Banks also offer Australian households innovative features and services at competitive prices.

That competition has seen one in five of us switch accounts over the past year.

The ABA believes strongly that competition will improve further with the introduction of Open Banking, Comprehensive Credit Reporting and regulatory reforms to further reduce barriers to new entrants.

In addition, the new ASIC approved Banking Code of Practice has specific requirements regarding transparency and providing information to consumers to help them be better informed.

The Australian Banking Association and its members look forward to considering the Productivity Commission’s report and findings in full.

ENDS
Contact: Kelly Stevens 0475 741 007

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