• Contact
  • Feedback
Banking Day
Stay Ahead. Stay Informed.
Concise. Candid. Provocative.
Get the daily banking news that matters
Banking Day – Your trusted source for independent financial insights.
Subscribe Now
  • News
  • Topics
    • All Topics
    • Briefs
    • Major Banks
    • Authorised deposit-taking institutions
    • Insurance, funds and super
    • Payments, mobile & wallets
    • Consumer lending
    • Mortgages
    • Business lending
    • Finance regulation
    • Debt capital markets
    • Ratings agencies
    • Equity capital markets
    • Professional services
    • Work & career
    • Foreign news
    • Other topics
  • Free Trial
  • Subscribe
  • Resources
    • Industry events
  • About us
    • About Banking Day
    • Advertise
    • Feedback
    • Contact Banking Day
  • Search
  • Login
  • My account
    • Account settings
    • User Admin
    • Logout

Login or request a free trial

Credit taps opened wide

22 January 2014 5:51PM
Want free credit? National Australia Bank is the bank to ask. It will charge no interest all on its personal credit cards for 15 months.Citi-funded Virgin Money used to have the edge when it came to aggressive offers on cards, with 14 months free money offered.Before that, Commonwealth Bank had the edge in product risk, with a 12 month interest-free offer.NAB has no doubt noticed the huge gains in market share made by Commonwealth in credit cards and has also lowered its rates on personal loans.MWE Consulting's analysis of Reserve Bank of Australia data puts Commonwealth's market share at 22.3 per cent, or 1.4 percentage points higher than two years ago.Personal credit cards constitute a A$45 billion segment, one that earns banks annual fees and merchant fees, and the apparently optional revenue line of interest income.Commonwealth has embarked on further conquest of this market on the merchant side, driven by IT innovation, so it makes sense to grow the borrower side of the cards business at a similar tempo.But NAB wants to reclaim some of the share of this profit pool, a reminder that adjustments in market share between oligopolists do bring vitality to the retail banking market.Combined with the obvious accommodation made by banks over recent months for the rising demand for investment home loans, a considered effort is now underway to stimulate credit demand by loosening credit terms.

I'm a returning subscriber

*
Password reset *
Login

Request a free trial

  • Emailing you the news at 7am.
  • Covering core lending and funding issues, strategy, payments, regulation, risk management, IT, marketing and more.
  • Original news and summaries of major stories from other media – ditch your newspaper subscriptions.
  • Focused on banking and finance, saving you the time spent wading through newspapers and other services.
  • With reporting from former editors and senior writers from the AFR and The Australian.
  • Configured for your phone, laptop and PC.
Free trial Banking Day
Stay Ahead. Stay Informed.
Concise. Candid. Provocative.
Get the daily banking news that matters
Banking Day – Your trusted source for independent financial insights.
Subscribe Now

Consumer lending

  • Latitude, Harvey Norman liable for interest free GO card con

Copyright © WorkDay Media 2003-2025.

Banking Day is a WorkDay Media publication

WorkDay Media Unit Trust

  • Privacy policy
  • Terms of access and use