The "Fifth Pillars"

Charmain Gordon

If you can get your hands on a copy of the Financial Review, Tuesday October 30, Richard Denniss' article "Customers pay for Oligopoly" is well worth a read. The article discusses whether there really is (can be?!) a competitive market in the Banking Industry, citing possible reasons why this sector falls short in it delivery to consumers. Interesting points raised - ONE "Of the 100 banks, credit unions and building societies trading in Australia, the "Big 4" (sic.) have 84% (of the market) in home lending." This lack of Market "Power" suggests to me this "Fifth Pillar" doesnt really have the stability of the other four. TWO Have you asked, or are you advising your clients to ask your/their Bank for a discount? 70 basis points (0.07 points) off the standard variable rate seems the norm... (to approved customers, of course!). THREE With over 500 Mortgage Products to compare, it would take you 83 hours to compare those products, only spending TEN MINUTES on each one. Professionally, I have always had positive dealings with credit unions and building societies, and believe that there is no reason they shouldn't be considered as your Lender of choice when you are seeking Finance.