The Federal Opposition has pledged to conduct a review of Australia’s financial services sector should it win government next election, which it says will translate into more competitive and transparent banking for Australians.

 

Bankmecu has welcomed the announcement, with Managing director, Damien Walsh, saying it would bring real benefit for Australians by addressing issues of competition in the banking sector.

 

“We welcome Joe Hockey’s view that a review of the financial services sector is warranted because Australians are looking for and deserve a better deal on their banking,” Mr Walsh said.

 

“There is a range of issues that need to be examined and new approaches taken to improve competition, from regulatory frameworks to ensuring that consumers can make informed decisions.”

 

“For example, some of the major banks are using sub-brand strategies in order to further increase their market share and there is no requirement for them to disclose this ownership in advertisements to potential customers.”

 

A survey of 1000 Australians conducted by Essential Research showed strong - 74% - support for banks that are owned by other banks to disclose this ownership in their advertising.

 

Furthermore, 60% said that sub-brands either reduced or made little or no difference to competition.