Big Four Banks

Campaigning for better banking is a bit like the start of the footy season. We begin as optimists, trying to forget the disappointments of last year, the unfair penalties and questionable free kicks, hoping instead for some healthy competition.

That is where the similarities end. While other national sports have salary caps and at least the semblance of a level playing field, our big four banks have spent the pre-season again demonstrating why they are about as popular as a tram of drunk Collingwood supporters.

Recent weeks brought interest rate rises outside of the Reserve Bank cycle and more record profits, set against a backdrop of outsourcing, job losses and tales of high-seas parties that could put “mad Monday” to shame. Even the most hardened optimist would admit there seems more chance of Russell Crowe’s Rabbitohs claiming the NRL trophy than our major banks putting customers first.

Continue reading "Move your money, don’t bank with the losing team" »

We’ve been talking a lot about interest rates this week. And the 30 per cent of us who have mortgages will be keeping our eyes on news websites today, with ANZ expected to push up its lending rates and the rest of the Big Four banks likely to follow. That’s despite the Reserve Bank keeping the official rate on hold earlier in the week.

Interest rates are just one of the many ways that bankers rip us off. It’s pretty much their job. There’s no such thing as a free lunch (or mortgage) when it comes to the banks. The government can only do so much to protect us. Although in the past few years the federal government has started enacting some consumer-oriented reforms in the banking sector.

But the government could be protecting us much better when it comes to one part of our everyday banking: the fees we get charged when we withdraw our dosh from an ATM that our bank doesn’t own.

Continue reading "Those greedy ATMs gobble up more than your card" »

Here we go again - another bank switching package from Wayne Swan. Has Swan got it right this time? Well, yes and no.

There’s no doubt that Wayne Swan’s recent announcement that bank customers will be allowed to sign a single form to switch banks is well overdue. In reality, Swan could and should have pursued the “one form” approach back in 2008 as we all suspected that bank switching can be as simple as filling in just one form.

Should we be excited about Swan’s latest bank switching package? Well, not just yet. Any excitement needs to be tempered by doubts as to whether the latest reforms are to be extended to small business customers.

Continue reading "The itch to switch is still not easily scratched" »

Have you had a close look at Wayne Swan’s December 2010 bank package? Don’t worry if you haven’t yet as you haven’t missed much.

For those who have, it’s clear that it’s so light handed and minimalist that the big banks aren’t bothered by it. In fact, the big banks have even told the Senate banking inquiry that they actually like aspects of the package.

So much for Swan’s tough talk regarding the big banks. Given how much of a fizzer the package will be, one has to wonder if Swan’s announcement was more about being seen to be “doing something” in response to the public anger towards the big banks.

Continue reading "Swan’s bank package is a fizzer" »

Wayne Swan is aggrieved. The hard-working treasurer is disappointed at the way his long-heralded bank reform package has gone over. But should he be surprised really?

Let’s face it, bank packages, especially over-hyped ones, always underwhelm. Knowing this, it is curious that the Government has again managed expectations so ham-fistedly, taking weeks to reveal an unremarkable hand. Perhaps, like many things, it depends on where you stand.

After toiling away behind the scenes, the Government feels it has offered up serious reform. This may or may not turn out to be true if things like genuine portability of account numbers come to pass. Ditto with allowing banks to tap into the one trillion dollar national superannuation nest-egg, which may help storm-proof the finance sector against future global credit crunches. But neither of these reforms, nor many other aspects of the package, will do much for home-owners right now.

Continue reading "There’s not really a lot Wayne Swan can do about banks" »