InfoChoice, in conjunction with the banking industry newsletter The Sheet, now publishes independent measures of the home loan market through our publication State of Play. The second edition of this report publishes this week.
One object of the research in State of Play is our long-term frustration over the inaccurate commentary over market shares in banking product markets, a problem that never seems to go away. This report tackles one such product, namely home loans.
For instance, claims over the last month or so that big banks have 90 per cent or more of the market are exaggerated.
According to State of Play, big banks held a market share of only 59 per cent in mid 2007, and this increased to only 60 per cent at March 2008, a gain of one percentage point (note that it is tricky to nail down market share on a shorter term basis).
On a "flow" basis (of a net growth in lending basis), the market share of the major banks is 70 per cent, and once Westpac buys St George the market share of the big four, at the end of 2008, will be close to 80 per cent - but that's all.
Bear in mind that some other lenders are having a good credit crunch.
BankWest and ING in particular are two foreign-owned banks gaining market share rapidly at the moment.
Then there's AMP: AMP Banking used to be invisible, but has a market share of close to three per cent, on the basis of 2008 flows, and they are doing better than Macquarie Bank or Challenger ever did.
Report published this week.
Subs start from $2995, plus gst.
Contact:
Steven Anderson
Head of Research
InfoChoice
steven.anderson@infochoice.com.au
Mob. 0400 328 067
Ph. 02 9247 6788
20080804 SOP2 Cover-A5-hi