(24 September 2008 – Australia) An increased amount of large companies in Australia have not yet found the bank that best suits their needs, according to East & Partners’ latest Corporate Transaction Banking Markets Report.In this $20 to $340 million turnover segment, transaction banking continues to be rated as fundamental. As a consequence, businesses in Australia are prepared to search for the right transaction bank.
Peter Drennan, financial markets analyst at East & Partners’ said that “in the current market, businesses are likely to look for quality and support from their banks and are willing to forego relationship tenure to do so”.
“As a result, banks and businesses alike are missing out on long term relationships that can be beneficial to both parties in terms of further opportunities and developing greater understanding”, Drennan added.
Greater churn, however, does bode well for emerging banks looking to establish a greater foothold in this market. While the Big Four banks still dominate, their overall share is down on what it was a few years ago.
Smaller banks with an international background are developing their market share in this business banking segment. BankWest and HSBC in particular have seen large increases in their share of all primary and secondary relationships over the past six months.