NAB aims for faster than system growth
(5th October 2010 – Australia) National Australia Bank’s effort to nab a larger share of the mortgage market appears to be working, as the bank consciously continues to compete almost entire on price under its ‘fair value’ banking strategy.
New data from the Australian Prudential Regulatory Authority (APRA) shows that the bank has increased its mortgage market share to 14.5 percent by primarily enticing customers from Westpac and the Commonwealth Bank, the two largest holders of mortgage market share with 26.7 percent and 28.4 percent respectively.
NAB has the cheapest standard variable rate of the big four offering 7.24 percent, compared to CBA’s 7.36 percent, ANZ’s7.41 percent and Westpac’s 7.51 percent.
NAB's portfolio, on a three-month annualised basis, has grown by 16 percent, easily outpacing the rest of the major four.
Lisa Gray, NAB's head of personal banking told The Australian newspaper last week that the bank was keen to make greater headway to bridge the gap with its major rivals, especially in mortgages and credit cards.
We want to be more competitive across the board as well as being more competitive on credit cards, Ms Gray said after the bank announced changes to the way interest is charged on credit cards.
The bank will do this by growing faster than system, Ms Gray added.
NAB has the cheapest standard variable rate of the big four offering 7.24 percent, compared to CBA’s 7.36 percent, ANZ’s7.41 percent and Westpac’s 7.51 percent.
NAB's portfolio, on a three-month annualised basis, has grown by 16 percent, easily outpacing the rest of the major four.
Lisa Gray, NAB's head of personal banking told The Australian newspaper last week that the bank was keen to make greater headway to bridge the gap with its major rivals, especially in mortgages and credit cards.
We want to be more competitive across the board as well as being more competitive on credit cards, Ms Gray said after the bank announced changes to the way interest is charged on credit cards.
The bank will do this by growing faster than system, Ms Gray added.