Compare Credit Cards
- Credit Cards Home
- Balance Transfer Rate
- Low Interest
- No Annual Fee
- Reward Credit Cards
- Business Credit Cards
- Gold & Platinum
- Debit Cards
Compare Banking
Compare Loans
Compare Insurance
- Insurance Home
- Health Insurance
- Home Insurance
- Life Insurance
- Motor & Bike Insurance
- Travel Insurance
Investment Providers
Links
Citibank Has Ambitious Plans For Australian Credit Card Market
Global bank giant Citibank has ambitions to end the near total dominance of Australia’s Big Four banking groups on the consumer credit card market.
Citibank, which is the retail banking operation of Citigroup says it wants to usurp NAB’s position as the fourth most active issuer of Australian credit cards.
John Larsen of consumer banking and cards for Asia-Pacific says there are tremendous opportunities for growth in retail banking in Australia.
“We see Australia as a sophisticated and very competitive market — it’s dominated by the four major banks here, we are continuing to see opportunities for us. We’re a significant player in the credit cards market and we’ve had success with a number of the partnerships we have in place We also have our own branded credit cards business, which is a durable business.” Mr. Larsen said.
Citbank, with 9.8 per cent of the market, is the fifth largest credit card issuer in Australia. CBA is the dominant player having captured 19.7 per cent, with ANZ in second place controlling 18.2 per cent. Westpac is the third largest issuer, owning 17.6 per cent with NAB rounding up the rear, having issued 12.1 per cent of all cards.
Citibank’s ambition to break into the top four is largely driven by 10 per cent growth in receivables the lender experienced during calendar 2009, well above the rate experienced by the major lenders.
“The competitors don’t make it easy for us; we think we offer better value for the business that we are competing for. We offer value and transparency, and if we can continue to do there’s no reason we can’t gain the additional market share to take us to number four.” Mr. Larsen said.
Mr. Larsen says Citbank intends to eschew large scale acquisition opportunities in the Asia Pacific region, preferring instead a strategy of organic growth.
“If you look at Citibank and our DNA, we have done very few acquisitions, although we have created some alliances, but the core of our business is to grow, account by account.” he said.
Citibank’s joint venture to offer finance and operations support in conjunction with branded cards from Richard Branson’s Virgin Group will begin in July.
Mr. Larsen said Citibank was now well-positioned in the Asia-Pacific region.
Compare Australian Credit Card Deals
NAB Optimistic Over AXA APH Acquisition
Steve Tucker, chief executive of MLC, the wealth management unit of Australian banking major National Australia Bank (NAB) says he is confident that the lenders $13.2 billion bid for AXA Asia Pacific Holdings (APH) will ultimately be successful, despite the fact that the ACCC on Friday deferred its ruling on the proposed deal.
“I think the ACCC is going through a very robust process, scoping views and opinions from far and wide. But we don’t believe there are any issues on fundamental competition grounds.” Mr. Tucker said.
The ACCC had previously said it would rule on the two rival bids by NAB and AMP for APH by March 17th. However on Friday it revealed that it was deferring its ruling, and would pass judgement on AMP’s $12 billion bid on April 1st and pushed back its NAB ruling to the 22nd of April.
AMP has made the argument to the regulator, that an NAB acquisition of AMP would stifle competition within the financial advisory business, but has said nothing about whether it planned to table a more generous bid.
The regulator in its initial summary has noted that NAB’s proposed acquisition of Axa APH raised a “higher level of concern than AMP’s”.
MLC’s Tucker says he accepts the need for the regulator to assess the implications of the acquisition, but sought to downplay any potential problems.
“There have been some concerns raised in regards to investment platforms and the share we will have and whether or not we will be in a position where we can exert influence on things like price. We don’t think that should be a concern at all. If you look at the platforms market, clearly is it is only one segment of a pretty diverse investment system. There are new entrants into the platforms market all the time.” Mr. Tucker said.
Mr. Tucker rejected the notion that NAB’s acquisition of APH would result in stifled competition, something that the regulator is very concerned about, voicing doubts that a deal may result in higher fees for the consumer.
“There are 18,000 financial planners out there, we might end up with 3000 or so aligned to us, hardly an overwhelming market share in terms of advice. The good news, thinking from a consumer point of view, is that we are the leading organisation when it comes to championing improvements in quality of advice, openness and transparency and being the first to move to the fee model and providing products that have been commission free since 2005.” Mr. Tucker said
The competition regulator is also assessing the probability that AMP itself may become a potential acquisition target if it fails to acquire APH, and whether it was possible that a merger between AMP and APH could yield a fifth pillar and new competitive force in Australian financial services, currently dominated by the Big Four lenders.
Compare Australian Bank Account Deals
Westpac Says Domain Name Sale Attempt Copyright Infringement
An internet entrepreneur who purchased a domain containing Westpac in the URL has had his offer to sell the domain back to Westpac rejected by the lender.
>> Read more
NAB Remains In The Running For RBS UK Branch Network
Australian banking major National Australia Bank (NAB) and Virgin Money remain in the running for the acquisition of a 318 strong branch banking network owned by troubled British lender Royal Bank of Scotland (RBS), whilst Spanish banking giant Banco Santander remains the front runner, having hired Credit Suisse to advise on its bid.
>> Read more
Mortgage Choice Plans Assault On Mortgage Lending Market
The largest independent mortgage broker in Australia says it intends to launch an assault on the $1 trillion home loan market.
Michael Russell, chief executive of mortgage broker Mortgage Choice says the company is looking at various options for funding that would enable the broker to create a host of home loan products “that are every bit as competitive as the best of the products we have on our panel”.
>> Read more
ANZ Wins In Principle Approval For Banking In India
Australian banking major ANZ has won an in principle regulatory approval from the Indian central bank for a foreign banking license in the country, which represents an advancement of its ambitions to transform into a super-regional lender.
>> Read more
Citi To Make Aggressive Push Into Australian Prepaid Credit Card Market
Global banking giant Citi intends to make an aggressive push into the Australian market for prepaid credit cards. The prepaid credit cards are typically issued by businesses who wish to reward their customers.
>> Read more
Competition Regulator May Extend Deadline For AXA Ruling
Graeme Samuel, chairman of the Australian Competition and Consumer Commission says that the regulator may need more time to evaluate the two competing bids for AXA Asia Pacific Holdings, and may have to extend the March 17th deadline for ruling on proposals by NAB and AMP.
>> Read more
JP Morgan To Issue Kangaroo Bond
JP Morgan says it intends to be the first Wall Street bank to issue Kangaroo bonds since Lehman Brothers collapsed in 2008.
>> Read more
NAB Chief Defends Lenders Strategy
Cameron Clyne, chief executive of Australian banking major National Australia Bank has been forced to come out in defence of the growth strategy that the lender has embarked upon, as investor concern that NAB is struggling to keep pace with rivals mounts.
>> Read more
