 Lenders fight it out for mortgage market
ANZ Bank and National Australia bank are hungry. A growing appetite for a larger share of the mortgage market is spurred on by rival Westpac dominating mortgage markets, along with Commonwealth Bank of Australia. ANZ and NAB found their combined share of new mortgage approvals fell in July to lower than other subsidiaries.
Did ANZ underestimate the strong property market? Westpac offer one day turnaround on some applications, while ANZ and NAB have been caught unawares and back-office processing times are slower.
An ANZ spokesman said yesterday that adjustments to the business under way "should see improved flows in the coming months".
"This includes improved turnaround times for processing mortgage applications," the spokesman said.
NAB have stated their desire to "grow their presence" and are planning on acquiring the Challenger mortgage business.
According to Australian Prudential Regulation Authority data for July, Commonwealth Bank and Westpac were storming ahead and talking the lead. NAB's share and ANZ's share scored lower.
The Australian Bankers Association are arguing this doesn't imply the big four are dominating the market and Bank of Queensland chief executive David Liddy was supporting in this defence. He said that BOQ are achieving good results in mortgage writing but is wanting the government to look at ways to increase competition between the smaller banks.
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