HomeView 2017 Media ReleasesConsumer credit card confusion shows need for action to promote competition

While the personal credit card may have got a workout over Christmas, new research indicates consumers are very poorly informed about the credit card market.

While the personal credit card may have got a workout over Christmas, new research indicates consumers are very poorly informed about the credit card market.

A poll conducted by Essential Research in the middle of the busy Christmas shopping period has found many consumers can’t identify who offers the best deals and don’t know the interest rate they are being charged on their cards.

“When consumers are unable to identify who offers the most competitive products and what interest rate they pay, we have a problem,”  COBA CEO Mark Degotardi said.

“You have to wonder what is going on when a third of young Australians polled think the major banks offer the lowest interest rates, when this is far from the case.

“In fact, customer owned banking institutions are the market leaders, with cards that are on average 5.7% lower than the big 4*.

“This poll is more evidence of the need for action to promote competition by empowering consumers to get better deals.

“There are readily-available policy measures to empower consumers.

“COBA supports consumers having a new ‘comprehensive right’ to access data held digitally about themselves. Enabling consumers to better compare banking products and services will lead to better consumer and market outcomes.

“This new consumer right has been proposed by the Productivity Commission (PC). We are calling on the PC to go further and explicitly nominate the best method of data sharing to maximise the benefits.

“The best method of data sharing appears to be the ‘open API’ format.”

For more detail on this policy proposal, see COBA’s submission to the PC here.

*Figures sourced from Canstar Online Database, for standard credit cards (unsecured), excluding premium cards and special offers, 17 January, 2016

Consumer Research369.93 KB

Media Release146.12 KB

For more information please contact:

Daniel McDougall, Senior Manager – Media and Communication

02 8035 8444 or 0407 637 541, This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Customer Owned Banking Association is the industry body for credit unions, building societies, mutual banks and friendly societies.  See www.customerownedbanking.asn.au

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Media Contacts

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