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Steven Cross
The removal of exit fees has helped one major to significantly grow its market share.
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While the exit fee ban, which came into effect on 1 July 2011, was originally introduced to enhance the competitiveness of Australia’s non-bank lenders, National Australia Bank has benefited significantly.
At a press conference in Sydney yesterday, NAB chief executive Cameron Clyne said the bank had seen an increase in switching.
“We’ve had around 650,000 new customers join with NAB in recent times, which is very encouraging,” he said.
“People are realising there’s a lot more information out there, they can see what rates are around and what those pricings mean.”
Following NABs pledge to have the lowest standard variable rate of all the major lenders in 2012, Mr Clyne said he was pushing for customers to refinance their loans with the lender.
“[We were] keen to place as many switching initiatives as we can in regards to the removal of exit fees. So we are seeing quite a bit of switching.”
