(9 December 2010 – Australia) National Australia Bank has boasted it has saved bank customers around A$900 million a year.The claim by the bank came as they entered a submission to the Senate inquiry on bank competition.
NAB said that its “fair value” initiatives, and the response of commercial rivals, have resulted in the substantial savings for bank customers.
The bank has been calling for further action to facilitate account switching as a means of boosting competition.
NAB said that competition was not reliant on the number of options available, with switching costs in the residential mortgage market a ‘more meaningful consideration’.
‘The persistence of mortgage exit fees in the marketplace is an inhibitor of competitive pressure,’ the submission says.