HomeView 2014 Media ReleasesCOBA questions NAB's cheeky market leader claim

NAB has taken an extremely loose approach to the term ‘market-leading’ in launching new offers on personal loans.

NAB is offering unsecured personal loans at rates that:

  • are not the lowest in the market, and
  • in the case of fixed rate personal loans, do not even match the average rate for loans offered by customer-owned banking institutions.

Yet NAB’s media release ‘NAB launches market-leading offers for Personal Loans and Credit Cards’ repeatedly uses the phrases ‘market-leading’. 

Customer owned banking institutions’ fixed rate unsecured personal loans have an average rate of 12.44% while the new NAB rate is 12.99%. There are fixed rate unsecured personal loans in the market with rates as low as 8.99% or 400 basis points lower than NAB’s “market leading” offer.

In the variable unsecured personal loans market, there are also several alternatives available from customer owned institutions below the NAB quoted rate of 11.99%.

“Perhaps this is another example of how the major banks seek to frame the banking market as a market with just four players. In fact, there are 100 customer-owned banking institutions offering highly competitive personal loans, credit cards and home loans,” said COBA Acting Head of Public Affairs Luke Lawler.

Fixed rates, unsecured personal loans, 21st January, 2014.

Market Segment

Avg. Rate

Customer Owned Banking  

12.44%

NAB new rate

12.99%
Major Banks

13.78%

Source: Canstar  *Please note, this data excludes any personal loans explicitly branded as restricted to one purpose (e.g.  home improvement only) or restricted to one group within the entity’s customer base (e.g. home owners only). The data also excludes any products that are listed with a range of interest rates (e.g. 11.00 to 13.00 per cent).

For more information please contact:
Daniel McDougall, Senior Manager – Media and Communication
02 8035 8444; 0407 637 541; This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Download PDF version here158.57 KB

284x148_man.jpg

Media Contacts

Mick Gibb
Corporate Affairs Manager
P: +61 2 8035 8444
M: +61 423 149 494
Email Mickcontact-arrow

COBA Alerts

To receive notifications about our latest Media Releases, Submissions and other news sent straight to your inbox, subscribe to COBA Alerts.