• About
  • Contact
  • Submit News
Friday, January 22, 2021
No Result
View All Result
NEWSLETTER
  • Home
  • World
    • Business
    • Economy
    • Politics
    • Geo-Engineering
    • Environment
    • Police State
    • Foreign Policy
  • U.S.
    • Federal Reserve
  • Globalist Agenda
    • Secret Societies
    • World Order
    • The Globalists
  • Health
    • Big Pharma
    • Fluoride
    • Food
    • Gmo’s
    • Vaccines
  • Sci/Tech
    • Space
    • Trans-Humanism
  • More+
    • Ancient Civilizations
    • Astrology
    • Astrotheology
    • Awareness
    • DIY
    • Esoteric
    • Free Energy
    • Hidden History
    • Humanities
    • Infographics
    • Knowledge
    • Religion
    • Spirituality
  • GE TV
  • Home
  • World
    • Business
    • Economy
    • Politics
    • Geo-Engineering
    • Environment
    • Police State
    • Foreign Policy
  • U.S.
    • Federal Reserve
  • Globalist Agenda
    • Secret Societies
    • World Order
    • The Globalists
  • Health
    • Big Pharma
    • Fluoride
    • Food
    • Gmo’s
    • Vaccines
  • Sci/Tech
    • Space
    • Trans-Humanism
  • More+
    • Ancient Civilizations
    • Astrology
    • Astrotheology
    • Awareness
    • DIY
    • Esoteric
    • Free Energy
    • Hidden History
    • Humanities
    • Infographics
    • Knowledge
    • Religion
    • Spirituality
  • GE TV
No Result
View All Result
The Global Elite
No Result
View All Result
Home Economics

INFOGRAPHIC: Australia’s Banking System: Who is Behind Your Credit Card?

by Global Elite News
16 December, 2013
in Economics, Infographics
0
INFOGRAPHIC: Australia’s Banking System: Who is Behind Your Credit Card?
FacebookTwitter

We’ve researched 99 banks, mutuals, building societies, credit unions and direct credit card companies to show which bank is behind your credit. There might be a few surprises as you discover some of the relationships that exist between the financial institutions in Australia for credit cards. The banking landscape of relationships is very different for other products such as home loans.

The big four continue to dominate the banking sector like an undying Goliath, making billions in fees off consumers across all product lines, who in turn are getting increasingly angry with the situation and with the big four’s profits. The smartest guys in the room, or the biggest gorillas, depending on how you look at it, will not stand idly at the prospect of losing customers simply because those customers don’t like their size. They are keen to offer an alternative – but what consumers don’t know is that their favourite small bank or their preferred credit card might have a big four name not far behind it.

The big four offer a wide range of cards with excellent benefits and convenience, but as many consumer watchdogs point out, the fees to the customer can get exorbitant very quickly. With this added layer of obfuscation due to multi-branding, choosing the right card is probably more confusing than ever before. Luckily, the breadth of choice is high.

At this point, the role that a comparison site like Credit Card Compare plays comes into its own. We help to level the playing field by making it easy to compare credit cards from across the market and educate consumers about ‘who owns who’ and which bank allows people to transfer balances to and from.

“In Australia, the big four have basically locked up the mortgage market and as a result consumers are at their mercy when it comes to interest rates”, says Tom Godfrey, Head of Media for Choice, a consumer advocacy group. “This is not a great situation for consumers or the industry”.

The multi-branding strategies employed by banks are misleading and confusing for customers.

Godfrey points out that the Australian banking sector is one of the most highly concentrated in the world. Australian consumers, he says, are aware that the big four control the Australian market “and are reminded of it whenever they try to get a better deal on a financial product”. Not many consumers, however, are aware of the true extent of the big four’s influence.

One of the biggest issues credit unions and smaller banks raise with the big four is the idea of multi-branding: the big four often own smaller banks, but this ownership is hidden deep inside the fine print, and consumers are seldom aware of the link. The big four, meanwhile, savvy to the poor reputation they have with consumers, market their smaller banks as an alternative-to themselves.

“The multi-branding strategies employed by banks are misleading and confusing for customers, designed to create an illusion of competition and choice that in reality isn’t really there,” says Jason Murray, general manager of products and marketing at CUA.

The strategy appears to be working: according to research conducted in the beginning of 2013 by the Customer Owned Banking Association (previously Abacus), 80% of Australians are unaware that the Big Four banks own certain other home loan lenders. People’s Choice Credit Union spokesperson Stuart Symons points out that another independent study found that almost 50% of people surveyed did not know that Westpac owns St.George – the level of ignorance was even higher when it came to the big four’s ownership of BankSA, Bank of Melbourne and BankWest. Westpac, for one, is fully aware of the benefits this bring to the company, it would appear. Murray points to a 2011 statement made by current CEO of Westpac at the Senate inquiry into competition and banking: “The customers who have chosen St George do not want to bank with a major bank”.

There are other practical implications for a customer to want to stay away from the big four-owned banks, at least for the well-heeled: CUA’s Murray points out that the government guarantee of $250,000 deposits ‘only applies to the license entity’, meaning that for deposits spread across several banks within the same complex, anything over that amount is “out of guarantee”. There are deeper considerations as well that are harder to grasp.

The bigger ‘small’ players are fighting back. People’s Choice, for example, has run advertising campaigns drawing attention to multi-branding, and has been working closely with the Customer Owned Banking Association to encourage the federal government to make an inquiry into Australia’s banks in order to promote competition. CHOICE’s better banking campaign, according to Godfrey, was designed to encourage consumers to ‘compare, ditch and switch’ in order to promote competition and a more consumer-friendly banking sector.

“Better, tougher competition will benefit everyone in Australia because it will offer more choice and drive down fees and charges”, Symons says.

‘With Australians being charged a staggering $6.2 billion in credit card interest annually, we continue to promote ways consumers can get a better deal and save money’, Godfrey says.

There are other relationships between the smaller banks or credit unions and big worldwide financial brands. One way to fight back against the big four, many credit unions and smaller banks are finding, is to partner with a global partner that’s not part of the clique. A large number of them have chosen to partner with Citibank for credit cards. For CUA, the deal formed as part of its relationship with Cuscal, which negotiated it on behalf of a group of credit unions. Murray says the partnership has helped CUA offer products they otherwise would not have been able to administer or fund independently.

‘It has also enabled us to offer our customers great “special offers” and benefits such as very competitive balance transfer offers, complimentary international travel insurance and concierge services for Platinum cardholders as well as competitive annual fees for our credit cards,” Murray says.

“The big four offer a number of cards with excellent benefits, but as many consumer watchdogs point out, the fees to the customer can get exorbitant very quickly. With this added layer of obfuscation due to multi-branding, choosing the right card is probably more confusing than ever before. Luckily, the breadth of choice is high”, says David Boyd, founder of CreditCardCompare.com. “It is important to read the fine print when comparing these credit cards, something we have offered on this website for some time now. With this report, we hope consumers will learn just who exactly is behind their credit cards, so they can make their decisions fully informed”.

The credit unions and the consumer protection groups acknowledge that what the big four are pursuing with multi-branding is not against the law – but that doesn’t make it okay.

“At the moment it’s a legal business practice, but is it right?” says Symons.

Who Do You Really Bank With? Infographic

Source: creditcardcompare.com.au

0 0 vote
Article Rating

15.5k
SHARES
FacebookTwitterSubscribe
PinterestTumblrLinkedin Reddit DiggStumbleupon PocketVkDeliciousBufferWeiboWhatsappXingFlattrMailPrint

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Global Elite News

Your Source for Alternative News and Information. Deep Independent Journalism About Who Really Controls The World.

Related Posts

US, Japan, Canada, Australia and 8 Other Countries Sign Trans-Pacific Partnership Agreement
World News

US, Japan, Canada, Australia and 8 Other Countries Sign Trans-Pacific Partnership Agreement

by TGE News
4 February, 2016
0
Is the Audit the Fed Movement Losing Momentum?
Economics

Is the Audit the Fed Movement Losing Momentum?

by Global Elite News
15 October, 2015
0
Forex Scandal: Criminal Bankers Must Be Jailed, Not Fined
Economics

Forex Scandal: Criminal Bankers Must Be Jailed, Not Fined

by TGE News
20 August, 2015
1
Is Gold a Stupid “Pet Rock” or a Bedrock Asset?
Economics

Is Gold a Stupid “Pet Rock” or a Bedrock Asset?

by TGE News
23 July, 2015
0
Australia Passes Tyrannical Internet Laws
World News

Australia Passes Tyrannical Internet Laws

by TGE News
25 June, 2015
0
The Vaccine Racket: Amazing infographic reveals financial connections behind criminally-run vaccine industry
Infographics

The Vaccine Racket: Amazing infographic reveals financial connections behind criminally-run vaccine industry

by TGE News
30 May, 2015
7
Australian Uranium Mining Company Accused of Contaminating Lake Malawi
Energy

Australian Uranium Mining Company Accused of Contaminating Lake Malawi

by TGE News
29 January, 2015
0
39th Banker Dead in 13 Months, Third this Year
Conspiracies

39th Banker Dead in 13 Months, Third this Year

by Global Elite News
28 January, 2015
0
Load More
Next Post
Seven Ripoffs That Capitalists Would Like to Keep out of the Media

Seven Ripoffs That Capitalists Would Like to Keep out of the Media

The Grain That Damages The Human Brain

The Grain That Damages The Human Brain

Subscribe
Notify of

This site uses Akismet to reduce spam. Learn how your comment data is processed.

0 Comments
Inline Feedbacks
View all comments
  • Trending
  • Comments
  • Latest
A List of Banks Owned by the Rothschild Dynasty

A List of Banks Owned by the Rothschild Dynasty

19 February, 2013

The History of the ‘House of Rothschild’ (Complete)

24 January, 2013
Wikileaks Is A Rothschild Operation

Wikileaks Is A Rothschild Operation

22 December, 2012
Secrets Of The Elite: Why Forbes’s Rich List Doesn’t Include The Wealthiest Families On The Planet

Secrets Of The Elite: Why Forbes’s Rich List Doesn’t Include The Wealthiest Families On The Planet

19 September, 2015
Wikileaks Is A Rothschild Operation

Wikileaks Is A Rothschild Operation

6
Indisputable Evidence the Boston Marathon Bombing was a Staged Event

Indisputable Evidence the Boston Marathon Bombing was a Staged Event

3

What are the UN’s Agenda 21 and ICLEI?

2
CNN and MSNBC Lose Almost Half Their Viewers in One Year

CNN and MSNBC Lose Almost Half Their Viewers in One Year

2
George Soros Exposed as a Rothschild Agent in the 1990’s

George Soros Exposed as a Rothschild Agent in the 1990’s

1 August, 2018
Son of Frankenstein? UK Body Backs Human Embryo Gene Editing

Son of Frankenstein? UK Body Backs Human Embryo Gene Editing

23 July, 2018
Bolivia Declares ‘Total Independence’ from World Bank and IMF

Bolivia Declares ‘Total Independence’ from World Bank and IMF

24 July, 2017
Globalist and Grey Cardinal Zbigniew Brzezinski Dies at 89

Globalist and Grey Cardinal Zbigniew Brzezinski Dies at 89

28 May, 2017

Connect With Us

Most Read

  • A List of Banks Owned by the Rothschild Dynasty

    A List of Banks Owned by the Rothschild Dynasty

    7 shares
    Share 0 Tweet 0
  • The History of the ‘House of Rothschild’ (Complete)

    100 shares
    Share 0 Tweet 0
  • Wikileaks Is A Rothschild Operation

    4 shares
    Share 0 Tweet 0
  • Secrets Of The Elite: Why Forbes’s Rich List Doesn’t Include The Wealthiest Families On The Planet

    12 shares
    Share 0 Tweet 0
  • George Soros Exposed as a Rothschild Agent in the 1990’s

    2 shares
    Share 0 Tweet 0

Categories

Newsletter

Enter your email address to subscribe to our newsletter and receive notifications of new posts by email.

Join 11,868 other subscribers

RSS Global Elite TV

  • Why Is The Bilderberg 2019 Location Still a Secret?
  • The CFR LOVES Domestic Propaganda!
  • Alan Turing, Cybernetics and the Secrets of Life
  • Dr. Jerry Tennant: Healing the Body’s Electrical Circuitry

Site Links

  • Donate
  • Resources
  • Sitemap
  • The Globalists

About Us

TGE news is here to bring you true documented facts on what’s really happening in the world that you most likely will not see in the controlled mainstream corporate media.

  • About
  • Contact
  • Privacy & Terms
  • Submit News

(OA) 2012-2021 TGE News

No Result
View All Result
  • Home
  • World
    • Business
    • Economy
    • Politics
    • Geo-Engineering
    • Environment
    • Police State
    • Foreign Policy
  • U.S.
    • Federal Reserve
  • Globalist Agenda
    • Secret Societies
    • World Order
    • The Globalists
  • Health
    • Big Pharma
    • Fluoride
    • Food
    • Gmo’s
    • Vaccines
  • Sci/Tech
    • Space
    • Trans-Humanism
  • More+
    • Ancient Civilizations
    • Astrology
    • Astrotheology
    • Awareness
    • DIY
    • Esoteric
    • Free Energy
    • Hidden History
    • Humanities
    • Infographics
    • Knowledge
    • Religion
    • Spirituality
  • GE TV

(OA) 2012-2021 TGE News

0
0
Would love your thoughts, please comment.x
()
x
| Reply