Australia Retail Banking - Competitor Benchmarking 2021

This report - which is part of a series of Australian content including country analysis and consumer profiles - looks at market performance, retention risk, and current account market share. It ranks Australia's top banks across a range of criteria, from digital adoption and user experience to rewards and money management tools.

Despite the impact of COVID-19, Australian banks remain well placed to recover from the economic shock going forward as most incumbents increased total divisional assets (TDA). Banks must adapt to long term low-rate environments as rates appear unlikely to increase in the near future. Despite this, banks are expected to remain profitable and improve their bottom line by controlling costs and moving towards more efficient operating models.

Scope

• Cost/income ratios increased for several banks, in large part driven by COVID-19 losses and provisions but also due to increasing technology and capital-related expenses.
• CBA successfully increased its market share across retail deposits, residential mortgages, consumer credit, and personal loans over 2010-20.
• Digital adoption peaked in 2020 due to COVID-19 and has remained high since for many banks. However, reversion to pre-pandemic habits does appear to be affecting several banks.

Reasons to Buy

• Understand the Australian retail banking landscape and how it may develop based on key performance indicators.
• Gain an understanding of which Australian banks are performing best and will continue to do so.
• Learn which banks are under threat and are perceived as behind the curve by customers.