(24 September 2009 – Australia) While the Big Four banks have established a dominant market share in corporate transaction banking, two international banks are asserting themselves as key market competitors.The latest East & Partners’ Australian Corporate Transaction Banking Markets
Report for the six months to August 2009 shows international banks HSBC and Citi
are gaining a strong foothold in transaction banking.
For the Big Four, market share in cash management has increased to 75.7 percent,
after it dropped to a low of 72.7 in early 2008. With newly acquired BankWest
and St George added in, the Big Four now account for a substantial 87.3 percent
of all primary relationships.
Despite this dominance, HSBC and Citi, over the past two years, have increased
their market share while other non Big Four providers have fallen back. The pair
now holds 10.1 percent of all primary relationships, a significant 28 percent
jump on the levels seen two years ago.
“A direct result of the global financial crisis has been government intervention
and subsequent ownership of a number of high profile international banks. There
is no doubt that this did tarnish the perception of international banks in
general,” East & Partners’ financial markets analyst, Peter Drennan, said.
“However, despite this backdrop and with the traditional competitor brands of
BankWest and St George being acquired by the Big Four, HSBC and Citi in
Australia have taken up the mantle of real challengers in the transaction
banking market”, Mr Drennan added.
“Clearly, the two banks are utilising their strong international capabilities as
a major point of difference to the Big Four, particularly at a time when pricing
competition is more difficult to execute,” Mr Drennan concluded.
About East & Partners’ Corporate Transaction Banking Markets Report
East & Partners’ Corporate Transaction Banking Markets Report is an ongoing
six-monthly research service designed to deliver bank market share, wallet
share, customer satisfaction, mind share, engagement and churn analysis for
transaction banking products among companies turning over A$20 to 340 million
per annum. The report is based on interviews with a structure sample of 850
Corporate enterprises.
For more information, please contact:
Brett Williamson
Chief Operating Officer
East & Partners
t: 02-9004 7848
m: 0403 499 844
e: brett.w@eastandpartners.com