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Adelaide Bank has announced another cut to its variable rates, while also warning of an emerging threat to the business model of banks.
The SmartDoc low-doc product has fallen from 6.19 to 5.85 per cent, with the comparison rate set at 6.05 per cent.
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SmartDoc Plus has also been reduced from 6.44 to 5.99 per cent, with the comparison rate at 6.19 per cent.
It comes after Adelaide Bank last week announced rate cuts of up to 20 basis points.
Fons Caminiti, senior manager of broker distribution, said Adelaide Bank's low-doc loans are an attractive option for clients who don't qualify for a prime loan.
"Our low-doc SmartDoc Plus loan allows clients to borrow up to 70 per cent LVR with no LMI premium applicable," he said.
"Both low-doc products feature our fantastic 100 per cent offset account, unlimited EFTPOS transactions and our online budgeting tools, which are specifically designed to help get clients on the path to reducing their home loan sooner."
Meanwhile, Bendigo and Adelaide Bank managing director Mike Hirst has warned banks that new payment systems pose a threat to their future.
"Paypal, for example, apparently already has 5.5 million accounts in Australia. They might not yet have much money in them, but their potential is obvious," he said.
Mr Hirst said that although banks can't afford to build every new technology or platform that comes along, they also can't afford to ignore them.
"Our response has been to make sensible investments in those digital channels that are essential and more long term – the internet and mobile banking, for instance – but to retain the flexibility to partner with specialist providers in other more dynamic fields."
[Related: Adelaide Bank part of increasing BDM trend]
