GENERAL NEWS
FEDERAL Treasurer Jim Chalmers has confirmed that the federal government will review the Australian Competition and Consumer Commission (ACCC) home loan...
The ACCC Retail Deposits Inquiry final report was released on Friday and contained several recommendations aimed at improving outcomes for consumers and...
The corporate regulator received a total of 51 submissions from consumers, advocacy groups, industry associations, as well as market participants...
“Increased interest on savings should be a silver lining from the higher mortgage rates Australians are now experiencing,” Treasurer Jim Chalmers said...
“Just as we want Australians to get a good deal on their mortgages, we want savers to get the benefits of higher interest rates...
“We expect banks to treat their customers fairly when it comes to their savings accounts and I have asked Treasury to examine these proposals in conjunction with...
Among the findings of the ACCC’s final report was that while many banks offer retail deposit products, the sector is “concentrated with barriers to entry and expansion”, ...
“Banks recognise their customers are ‘sticky’ and invest in strategies to increase customer stickiness. This enhances banks’ ability to respond to price competition...
The report acknowledged that banks have greater discretion on how they set interest rates for retail deposits than they do for other funding sources, and “accordingly...
“Banks typically seek to minimise their retail deposit funding costs but may use short-term and limited time offers such as term deposit specials and introductory offer products...
“Bonus interest rates and introductory interest rates can boost the headline interest rates consumers can receive, however the actual interest rates received by...
“Further, the tactics banks use to retain or win higher value customers can be very selective and only a proportion of customers may benefit. Offers can be highly conditional to...
“Banks’ strategic pricing at the product and customer level makes retail deposit rates opaque and adds complexity for consumers engaging in the market.”...
“Key information on retail deposit products is available through bank websites and comparison websites, but can be too complex, not always easy to locate...
“There are significant impediments to switching which take time and effort to overcome, and which occur at several points in the process. These include changing direct debits...
The report said a number of initiatives have been ineffective at addressing both barriers to switching, and barriers in consumer engagement more generally...
“Measures that could reduce or remove these barriers have the potential to facilitate more widespread competition between banks and enhance consumer outcomes in the retail ...