CHOICE says it’s time for consumers to sign up and Move Your Money
CHOICE says that new analysis brings into question the ‘big four’ banks’ excuses for recent interest rate rises and puts the focus firmly back on their record profits.
According to a research note from French bank Societe Generale, "the claim that the recent increase in mortgage rates is due to higher funding costs is very dubious” and "[t]he mortgage hikes seem aimed at protecting their high profit margins."1
The analysis pokes holes in the key arguments used by banking industry figures to justify recent interest rate rises outside of the RBA cycle, along with job losses.
The people’s watchdog says it’s more evidence that consumers are getting a raw deal from Australia’s ‘big four’ banks, and that it’s time to take action.
“We have launched the CHOICE Move Your Money campaign calling on consumers around Australia to stand up to the big four banks and say ‘enough is enough’,” says CHOICE director of campaigns and communications Christopher Zinn.
“As we have seen over recent weeks, the banks would much rather have a complex argument about funding costs than be forced to justify the very real costs they are passing on to Australian consumers.
“This new research shows that the funding costs argument appears to not stack up, and that it’s really a case of major banks choosing to make record profits rather than compete for consumers’ business,” says Mr Zinn.
CHOICE says the Move Your Money campaign taps into a growing international movement, and aims to bring competitive pressure to Australia’s banking sector by giving consumers the tools to switch institutions.
“We know there are better deals beyond the ‘big four’ banks, and we know switching is easier than before – that’s why we’re calling on Australians to go to choice.com.au/moveyourmoney and send the ‘big four’ banks a message they can’t ignore,” says Mr Zinn.
For more information about the CHOICE Move Your Money campaign, go to choice.com.au/moveyourmoney
Christopher Zinn, CHOICE Director of Campaigns – 0425 296 442
Matt Levey, CHOICE Head of Campaigns – 0488 214 066