Top Australian Banks
The banking sector plays a crucial role in Australia's financial system.
A key part of Australia's financial system is played by its banking sector.
Commercial banking, stock brokerage, financial market trading, insurance, and money management are additional services that banks offer, along with typical banking services. There exist 53 banks in Australia, and the government owns 14 of them.
The banking sector in Australia has grown significantly through time and has a rich history intertwined with significant historical occurrences. For example, the Bank of New South Wales was the first bank to be founded in Australia in 1817.
The banking scene has changed since then due to mergers and acquisitions and the establishment of numerous local and foreign banks.
There are only a few significant domestic banks, but there are now close to 100 different banks—including foreign banks—operating in Australia.
Australia's banking system is incredibly trustworthy and genuine. Its banking industry is developed, highly competitive, and subject to strict regulation.
Australian banks significantly influence the financial system of Australia. They provide traditional services and commercial banking, among other things.
In terms of setting monetary policy and policing the payments system, the Reserve Bank of Australia (RBA) is in charge.
The Australian Prudential Regulation Authority (APRA), whose primary duty is to regulate the financial sector, is another option.
Its mandate includes superannuation providers, banks, credit unions, building societies, and insurance providers (including those offering general, life, and private health insurance).
Institutions currently serve Australian depositors, policyholders, and members of superannuation funds under the supervision of APRA, which manages assets worth A$7.6 trillion.
As a result of its gradual deregulation and privatization over time, it has developed. Following official requirements, foreign banks are increasingly joining the financial markets.
Australian retail banks offer a wide range of financial services to retail clients, including stock broking, securities underwriting, life insurance, general insurance, and others. For the benefit of consumers and businesses, they also offer consumer and business loans.
Retail banking works with brokerage houses and commercial banks to carry out a variety of financial services that it offers.
Foreign banks outside Australia were permitted to establish branches to serve the wholesale market.
Under the Banking Act, banks in Australia are required to have a banking license. Since they can only conduct business through Australian branches and foreign banks' subsidiaries registered in Australia, foreign banks will also require licenses.
Top 10 Australian banks
There are four basic groups into which Australian banks fall. These are:
- Banks with operations across the country.
- State banks
- Operations of regional banks
- Banks from abroad
To function throughout Australia, major or national banks maintain a vast network of branches and agents. In addition, in every state, there are state banks.
The regional banks are the ones that converted from building societies to becoming banks and targeting specific markets.
Australia's banking system is oligopolistic. However, Australia has less market oligopoly thanks to the dominance of four large banks.
Here is a brief description of each of these banks in detail:
Commonwealth Bank
A worldwide bank, Commonwealth Bank has branches in the United States, the United Kingdom, Asia, New Zealand, and Fiji. The bank's head office is in Sydney, established in 1911.
The bank has more than 11,000 locations and employs roughly 52,000 people.
It is the biggest bank in Australia and provides a wide range of financial goods and services. It presently offers 16.6 million consumers wealth management, retail, commercial, and institutional banking products and services.
Retail Banking Services, Business, Private Banking, Institutional Banking and Markets, New Zealand, Bankwest, and Others are the six segments that comprise the company's business.
Home loans, consumer finance, retail deposit products, and sales and services for all retail banking clients are all included in the retail banking services area.
Additionally, commissions are offered for the business and wealth management solutions retail distribution.
The Business Commercial and Private Banking section provide private banking services to high-net-worth individuals, relationship management banking services for corporate and agribusiness clients, and margin lending and trading through CommSec.
Retail banking products distributed through commercial and private banking networks are also eligible for commissions.
Institutional Banking and Markets serves key corporate, institutional, and government clients, and develops specialized solutions in response to client requirements, market trends, and industry developments.
Debt and equity capital improvement, financial and commodities risk management, and trade banking skills are all included in total capital solutions.
The New Zealand section includes New Zealand-based banking, investment management, and insurance operations but excludes institutional banking and overseas market operations.
Full-service bank Bank of the West provides a diversified variety of lending in commercial, rural, residential, and personal markets and a comprehensive range of deposit products. The bank operates in all domestic markets.
International Financial Services Asia, retail and small-business banking in Asia, retail bank investments in China and Vietnam, joint venture life insurance in China, and life insurance in Indonesia are some of the other divisions.
Australia and New Zealand Banking Group (ANZ)
One of Australia's biggest banks, ANZ, with its headquarters in Melbourne, was established in 1835. The bank serves 34 markets, including the US, Europe, Australia, New Zealand, Asia Pacific, and the Middle East.
Retail, small companies, corporate, and institutional customers can choose from various banking, financial, and other goods and services provided by Australia and New Zealand Banking Group Limited (ANZ).
The organization is divided into divisions in Australia, international & institutional banking, New Zealand, and The Global Wealth & Private Banking business.
Both retail and commercial business units are a part of the Australian division.
Mortgages, credit cards, unsecured loans, and deposits are all included in the retail sector.
Commercial, regional, and small business banks are all included in the commercial sector.
The global institution, retail Asia Pacific, Asian Partner business areas, and connections and infrastructure, are all part of the international and institutional banking division.
The New Zealand division includes operations and support, i.e., central support services and retail and commercial business units.
The Global Wealth and Private Banking business offer fund management, insurance, and private banking services to clients in Australia, New Zealand, and Asia. It also offers investments, superannuation, and insurance products and services.
National Australian Bank (NAB)
Sydney Commercial Bank and National Australia Bank merged and became NAB in 1982. The bank offers financial goods and services to private citizens and companies.
NAB is headquartered in New Zealand's Docklands and has 820 banking locations around the US, Asia, Europe, and New Zealand. NAB currently employs more than 35,063 people to serve close to 8 million customers globally.
Business Banking, Personal Banking, Wholesale Banking, NAB Wealth, and Bank of New Zealand are the channels it operates.
Commercial customers can obtain commercial banking services via the business banking section.
The personal banking sector caters to retail customers and small businesses.
Global markets, Treasury, specialty finance, financial institutions, and asset services are a part of the wholesale banking sector.
NAB's wealth division offers investment, insurance, financial counseling, and private wealth services.
In addition, a variety of UK banking services are offered in these locations by New Zealand banking.
Bank of Queensland
One of Australia's oldest banks is the Bank of Queensland, founded in 1874. The bank, which has its headquarters in Queensland, has 200 locations around Australia and employs 48,556 people.
It currently has 160 branches in Australia, comprising 95 "owner-owned" branches and 65 corporate branches.
The bank only offers retail banking services, and as of 2016, it had assets totaling $40.1 billion and revenues of $394 million.
The following divisions make up its business: Retail Banking, BOQ Business, and Others.
Customers handled via owner-controlled and corporate branch networks, direct channels, third-party intermediaries, and virgin money distribution methods can access solutions from the retail banking market.
The BOQ Business division includes specialized business banking services for commercial customers, such as commercial lending, equipment financing and leasing, cash flow finance, foreign exchange, interest rate hedging, transaction banking, and deposit options.
The Treasury, Insurance, and Group Head Office are mentioned in the Other category.
Macquarie Bank
The largest investment bank in Australia is Macquarie Bank, with its headquarters in Sydney. The bank was established in 1969 and offers capital, risk, and asset management solutions for the debt, equity, and commodity markets.
Macquarie Asset Management (MAM), Banking and Financial Services (BFS), Commodities and Global Markets, and Macquarie Capital are the divisions through which it conducts business.
Asset Management by Macquarie
MAM is a service asset manager that provides investment solutions in various asset classes, including stocks, fixed income, real estate, agribusiness, transport finance, renewable energy, and renewable infrastructure.
Banking and Financial Services (BFS)
Retail customers, advisers, brokers, and corporate clients take advantage of a wide range of BFS's personal banking, wealth management, commercial banking, and vehicle finance products and services.
Commodities and global markets
Equities, fixed income, currencies, commodities, technology, media, and telecommunications are a part of the commodities and global markets category.
Macquarie Capital
A wide variety of capital solutions are provided by Macquarie Capital, which is funded by debt, equity, and private capital.
Bendigo Bank
In November 2007, Adelaide Bank and Bendigo Bank merged to establish Bendigo Bank. It has regional offices in Docklands, Melbourne, and Ipswich, Queensland, and its headquarters are in Bendigo. It also operates in Adelaide and South Australia.
With around 7,200 workers, the bank is one of the biggest retail banks in Australia.
Small and medium-sized businesses and retail clients make up its major clientele.
The core activities are offering various banking and other financial services, such as lending, deposit-taking, fund management, insurance, Treasury and foreign exchange services, financial counseling, and trust services.
It operates through three divisions: Consumer, Business, and Agribusiness.
Customer interaction and services, such as branch networks, mobile relationship managers, third-party banking channels, wealth services, home security, call centers, and customer support functions, are what consumers are most interested in (including processing centers).
The business section's main priority is serving clients like Commercial Bank, Portfolio Fund, Delphi Bank, Community Sector Bank, and Great South.
All financial services provided to rural and agricultural businesses are categorized as agribusiness.
AMP Bank Ltd
Sydney is the home of AMP Bank, founded in 1988 to offer retail banking services.
A holding business, AMP Limited is involved in banking, insurance, superannuation, fund management, and personal financial services.
AMP bank in Australia and New Zealand offers services to 400 institutional clients and more than 5 million individual clients. They also have activities in North America, Europe, the Middle East, and Asia.
Wealth management (WM), AMP Capital, AMP bank, New Zealand Wealth Management (NZWM), Australia and New Zealand Wealth Protection (WP), and Mature Products are some categories through which it operates.
The Wealth Management Products segment offers managed investment products, unit-linked pensions, retirement income, platform and software management, and financial counseling.
Domestic and foreign clients receive investing services from AMP Capital.
Residential mortgages, deposits, and transaction banking are the areas of operation for AMP Bank.
The NZWM business comprises New Zealand-based wealth management, financial advisory, and distribution companies.
Individual and group terms, disability, and income protection insurance products are included in the WP and Mature categories for Australia and New Zealand.
Suncorp Bank
Brisbane is the home of Suncorp, which was established in 1902.
The following business divisions make up its operations: banking, personal insurance, commercial insurance, general insurance, and life.
Banking provides:
- Agricultural business goods.
- Personal and commercial banking.
- Financing for property and equipment.
- Loans for individuals and small businesses.
It provides trading and savings accounts along with foreign exchange and Treasury products.
Life insurance covers things like your home's belongings, your automobile, your ship, and your travels.
Commercial insurance comprises commercial auto, commercial property, marine, special industrial risk, public liability, professional liability, workers' compensation, and mandatory third-party insurance.
Customers in New Zealand can purchase general insurance products from the General Insurance business.
It includes home and property, marine, commercial, rural, building, engineering, travel insurance, public liability, professional indemnity, and director's and officer's liability.
The Life section offers fund management, financial planning, and pension administration services. Other industries operated by Suncorp Group include wholesale investment management and investments.
Bankwest
As a rural bank to assist Australian agriculture, it was founded in 1895. The Agricultural Bank evolved into a full-fledged trading bank in 1945. Established in 1990, it changed its name to Bankwest in 1994.
The bank has offices not only in Perth but also in Adelaide, Brisbane, Canberra, Melbourne, and Sydney.
Loans (home loans, auto loans, personal loans), credit card transactions, and savings accounts are a few financial services that Bankwest provides.
Bankwest introduced the Bankwest Regular Saver account for people in 2007.
The Student Edge debit card, linked to Bankwest's Student account, was introduced in 2012.
The Bankwest share trading platform was discontinued in 2016, and all Bankwest online share trading accounts were canceled on May 31, 2016.
Bankwest announced in February 2022 that it would discontinue providing business-related goods and services and gradually transfer all its current business clients to Commonwealth Bank.
FAQs
There are three main types of accounts in Australia.
- Trading account：
These accounts often referred to as checking accounts, are utilized for regular activities, including shopping, bill-paying, and depositing wages.
The trading account assesses a monthly cost based on the kind of service needed. For example, each bank has different fees and monthly transaction limits. Although this might only apply to certain accounts, customers might have access to a checkbook.
These accounts pay interest. The amount of interest earned is based on the account's balance.
However, there may be a minimum balance requirement. Regular banking transactions like deposits and withdrawals can also be made using a savings account. Certain accounts provide greater interest rates if withdrawals are not made within a specific time.
- Time deposit account：
These accounts pay a higher interest rate than savings accounts.
However, a minimum balance is usually required, and the customer must keep money in the account for a certain time, known as the "term." The interest rate is usually fixed, and the interest is paid at the end of the period.
Australia's Commonwealth Bank is the most popular in Australia.
It has the most customers out of the big four Australian banks. Three million more clients than Westpac Banking Corporation, or around 17 million, were Commonwealth Bank customers as of June 30, 2020.
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