The Diminishing Popularity Of Banks
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The last decade or so has seen a rise in the Australian economy but it has
also seen in a downfall in banking. Banking, as we know has become a necessity
and loans are increasingly becoming a popular means of sufficing an immediate
requirement. Banks in Australia have always been traditionally focused and some
of the top banks focusing on fulfilling basic consumer requirements of include:
This bank is a listed publicly and has its head office in South Australia. It
provides different types of financial services through a detailed distribution
network and by forming new national alliances.
AMP Banking Australia
AMP is one of the leading wealth management companies in Australia with an
excess of AUD$84 billion in assets.
ANZ (Australia and New Zealand) Bank
ANZ Bank is considered as one of the biggest banking companies in Australia
as well as New Zealand and was also ranked among the top 50 banks in the world.
The world headquarters for ANZ is situated in Melbourne where it started off in
Bank of Queensland (BOQ)
Bank of Queensland is the second largest Queensland-based banking and
financial institution and is listed among the top 5 biggest banks in Australia.
It was formerly called the Bank of South Australia and today it is one of the
largest financial institutions in South Australia and is also the main provider
of personal finance, housing and rural banking in the State. Today BankSA is
owned by St George Bank.
Commonwealth Bank of Australia
The Commonwealth Bank of Australia is one of leading banking and financial
institutions, which has positioned itself for future growth and is aiming to
make banking accessible to all Australians.
Macquarie Bank Limited
The Macquarie Bank offers different types of investment banking opportunities
and also caters to selected retail financial service markets as well as
commercial banking in Australia.
National Australia Bank
The National Australia Bank is an internationally acclaimed financial
services group that has been providing comprehensive range of financial services
in Australia as well as 15 other countries.
RBA - Reserve Bank of Australia
The Reserve Bank of Australia (RBA) is the central bank and its primary
responsibility is the monetary policy. Some of the key roles of the RBA include
maintaining the stability of the financial system and enhancing the efficiency
and safety of the Australian payments system.
These are some of the most popular banking institutions in Australia. Off
late, it has been noticed by various research groups that Banks are falling way
behind in their promises to upkeep customer satisfaction and to consistently
thrive to offer competitive interest rates on their loans. As a result, more and
more people are turning towards newer and non-traditional forms of accessing
capital such as non-bank lenders and now social lending or peer to peer lending
This phenomenon can be disastrous for banks as has been experienced by banks
in the UK following the launch of Zopa. Zopa is considered a pioneer in peer to
peer lending and anyone can take an online loan from the Zopa borrowing
platform. The salient point is that the borrower can set his or her repayment
amount with a maximum interest rate. The interest rate is definitely lower than
what banks are offering and hence more people are finding it advantageous from
their point of view.
Social lending has landed on the Australian shores with Lending Hub (lendinghub.com.au)
now being seen in the same light as Zopa and Prosper. Of course the funding
vehicle is still under development but one can safely predict that the social
lending networks will start to take lending market share from the banks. Another
aspect that has pushed social lending ahead is the fact that it is more
community oriented, which banks are not (although the banks like to portray
themselves as being people and community focused they have spent the last 4-5
years closing branches and making banking highly automated and less consumer
According to a recent study in Britain, it has been found that 74% of people
feel a positive attitude towards borrowing from a social lending community as
opposed to borrowing from their own high street banks. Almost 49% people feel
that the banks have not been able to keep their promise of offering customer
satisfaction. Another 81% believe that the banks are self-interested while a
good 76% believe that they are greedy.
All in all these features make banking institutions highly unpopular
especially now in the light of the unprecedented growth of social lending
communities and peer to peer lending solutions.
About the Author
Ivan Mantelli is an accomplished writer and is also the CEO of Lending Hub,
which is the new social lending platform in Australia. You can find more details
Follow us @Scopulus_News
Article Published/Sorted/Amended on Scopulus 2008-02-09 21:51:54 in Business Articles