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Jessica Darnbrough
Australian consumers overwhelmingly believe the big banks have too much power, research has found.
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Almost 80 per cent of people polled by Auspoll for AMP said the "big four" should be restricted from taking over other companies.
About two-thirds said the banking and financial services industry needed more regulation and they'd like to see the power of the Commonwealth Bank, Westpac, ANZ and NAB reduced.
Of the 1,200 people surveyed, 71 per cent of Australians said they were frustrated by the lack of choice and competition in the banking sector.
Mortgage Choice’s chief executive officer Michael Russell told The Adviser that he was surprised the percentage wasn’t higher.
“Competition has been lacking in the financial services sector for some time, and I am only shocked that not more consumers realise this,” he said.
“What is pleasing to see however, is that the vast majority of Australians realise there is a lack of competition and are annoyed by this fact. Competition is essential to the ongoing health of the mortgage market – no-one benefits from a banking monopoly.”
According to Mr Russell, the industry understands that more needs to be done to stimulate competition.
“I think the ACCC will be far more wary of further industry consolidation. Even Graham Samuel has been quoted as saying that if the Bankwest, CBA merger fell on his table today, he would think twice about approving it.”
