The Diminishing Popularity Of Banks

The last decade or so has seen a rise in the Australianbank and its primary responsibility is the monetary
economy but it has also seen in a downfall in banking.policy. Some of the key roles of the RBA include
Banking, as we know has become a necessity andmaintaining the stability of the financial system and
loans are increasingly becoming a popular means ofenhancing the efficiency and safety of the Australian
sufficing an immediate requirement. Banks in Australiapayments system.
have always been traditionally focused and some ofThese are some of the most popular banking
the top banks focusing on fulfilling basic consumerinstitutions in Australia. Off late, it has been noticed by
requirements of include:various research groups that Banks are falling way
Adelaide Bankbehind in their promises to upkeep customer
This bank is a listed publicly and has its head office insatisfaction and to consistently thrive to offer
South Australia. It provides different types of financialcompetitive interest rates on their loans. As a result,
services through a detailed distribution network and bymore and more people are turning towards newer and
forming new national alliances.non-traditional forms of accessing capital such as
AMP Banking Australianon-bank lenders and now social lending or peer to
AMP is one of the leading wealth managementpeer lending networks.
companies in Australia with an excess of AUD$84This phenomenon can be disastrous for banks as has
billion in assets.been experienced by banks in the UK following the
ANZ (Australia and New Zealand) Banklaunch of Zopa. Zopa is considered a pioneer in peer
ANZ Bank is considered as one of the biggest bankingto peer lending and anyone can take an online loan
companies in Australia as well as New Zealand andfrom the Zopa borrowing platform. The salient point is
was also ranked among the top 50 banks in the world.that the borrower can set his or her repayment
The world headquarters for ANZ is situated inamount with a maximum interest rate. The interest
Melbourne where it started off in the 1830s.rate is definitely lower than what banks are offering
Bank of Queensland (BOQ)and hence more people are finding it advantageous
Bank of Queensland is the second largestfrom their point of view.
Queensland-based banking and financial institution andSocial lending has landed on the Australian shores with
is listed among the top 5 biggest banks in Australia.Lending Hub au) now being seen in the same light as
BankSAZopa and Prosper. Of course the funding vehicle is still
It was formerly called the Bank of South Australia andunder development but one can safely predict that the
today it is one of the largest financial institutions insocial lending networks will start to take lending market
South Australia and is also the main provider ofshare from the banks. Another aspect that has
personal finance, housing and rural banking in the State.pushed social lending ahead is the fact that it is more
Today BankSA is owned by St George Bank.community oriented, which banks are not (although the
Commonwealth Bank of Australiabanks like to portray themselves as being people and
The Commonwealth Bank of Australia is one ofcommunity focused they have spent the last 4-5
leading banking and financial institutions, which hasyears closing branches and making banking highly
positioned itself for future growth and is aiming toautomated and less consumer focused).
make banking accessible to all Australians.According to a recent study in Britain, it has been
Macquarie Bank Limitedfound that 74% of people feel a positive attitude
The Macquarie Bank offers different types oftowards borrowing from a social lending community as
investment banking opportunities and also caters toopposed to borrowing from their own high street
selected retail financial service markets as well asbanks. Almost 49% people feel that the banks have
commercial banking in Australia.not been able to keep their promise of offering
National Australia Bankcustomer satisfaction. Another 81% believe that the
The National Australia Bank is an internationallybanks are self-interested while a good 76% believe
acclaimed financial services group that has beenthat they are greedy.
providing comprehensive range of financial services inAll in all these features make banking institutions highly
Australia as well as 15 other countries.unpopular especially now in the light of the
RBA - Reserve Bank of Australiaunprecedented growth of social lending communities
The Reserve Bank of Australia (RBA) is the centraland peer to peer lending solutions.