Foreign Lenders on their way

Global banks eye Australia: report

Business Spectator said:
As many as eight foreign banks are seeking Australian banking licences, including financiers from India and China as well as Spanish giant Santander...

But some are interested in taking a run at Australia's four largest banks through consumer banking. Foreign observers see Australia's largest banks as inefficient, lacking the latest technology and more focused on profits and high margins than customer service...

The Australian Prudential Regulation Authority is reviewing the applications and further applicants are expected later in 2011.
Let the games begin.

Cheers,
Michael
 
i wanna pull up a deck chair with a bucket of popcorn and a 2L bottle of coke with a twisty straw outside a big 4 bank each day of the week and just watch customers leave in droves, high-fiving them on the way out.
 
i wanna pull up a deck chair with a bucket of popcorn and a 2L bottle of coke with a twisty straw outside a big 4 bank each day of the week and just watch customers leave in droves, high-fiving them on the way out.
Nice one :D might have to join you in that activity Aaron
 
Unforuntately its not going to have a significant impact. Part of the competitive strength of the big 4 is their retail branch outlet. Not very easy to replicate.

And its the retail outlets that enable multiple profit centres to operate.
 
Unforuntately its not going to have a significant impact. Part of the competitive strength of the big 4 is their retail branch outlet. Not very easy to replicate.

And its the retail outlets that enable multiple profit centres to operate.
how do you figure that? i have no need for a branch. credit yes, snotty nosed tellers no. What are the multiple profit centres that a branch supports?
 
Unforuntately its not going to have a significant impact. Part of the competitive strength of the big 4 is their retail branch outlet. Not very easy to replicate.

And its the retail outlets that enable multiple profit centres to operate.
Uhh. Having to run local branches can be a disadvantage.( more expense) I have found banks with local branches cant uaually compete on rates, with interstate or overseas banks I have used. Can do all transaction on line including cheque deposite, have telephone if need to talk to some-one, have fax, email and post for documents. Can see broker if need be, a good one, (which is hard to find) has more clues and better to deal with any-way than most half witted managers. I have only ever found one loal bank branch that offers better personalized service than remote banks.
 
how do you figure that? i have no need for a branch. credit yes, snotty nosed tellers no. What are the multiple profit centres that a branch supports?
Where do the majority of people go to sign up for an account? Where do the majority of small businesses go to sign up for an account?

whats the interest rate paid on those accounts.

Where do the majority of small businesses go to organise a rent guarantee for their landlord.

The bank charges to provide the guarantee.

What about wealth creation schemes, what about transfers of money overseas.

There are numerous ways that the big 4 can 'clip the ticket'.

If a price war was to break out (and it hasnt so far) these other profit centres would assist, enabling the big 4 to survive until the weaker players exited.
 
I lived In Jakarta back in the mid 90s

I recall at that time there were 26 major banks

My local friends laughed when I told them the sort of fees we paid in OZ at that time

I doubt much has changed in relative terms

ta
rolf
 
According to the APRA website there are already 44 foreign ADIs.
How come another 8 are likely to make a substantive change to the market when the first 44 haven't?
Agree. Many are niche players or have specific objectives in Australia. Arab Bank for example.
 
If past behavior is anything to go by additional foreign banks will tend to play in the corporate/trade sector rather than resi lending. No need for major infrastructure etc. and the returns are better.
 
I can't see why all the bs and Gov' fuss over all this bank stuff and lack of competition anyway . Same with food.
All they'd have to do is law against them buying up all the little guys surely and why not clamp down on the coles and other mobs while we're at it.
Buy ups like this shouldn't be allowed in such a small environment as Australia's or you just get what we have.

It hardly seems like rocket science to me , what the big guys are trying to do is quite obvious .
 
Why don't they just lend their money to John Symond or Mark Bouris like they always have?

And which foreign bank has ever excelled at customer service historically?

Let's see who is first to tighten when the economy slows. What short memories people have - RAMs Bankwest etc.
 
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