Bank customers have moved away from margin lending products despite record low borrowing costs, a steadily rising share market and a local economy that's been steadily gaining pace. 

In contrast, data from the Reserve Bank and APRA, published this week, reinforces a well-observed trend that has extended over the past 18 to 24 months.

In the December 2021 quarter the total number of margin lenders' client accounts dipped below 100,000 for just the second time in 20 years, and then dropped steadily quarter on quarter to sit at 93,000 for the quarter ended March 2022.

Similarly, total borrowings against margin lending products, a statistic that was rising quarter on quarter a year ago, retreated from the 12-year high of almost $20.7 billion in the June 2022 quarter to sit at $17.6 billion in March 2022, a drop of almost 15 per cent in a year.

One metric that has moved upwards with increasing momentum has been the number of loans where margin calls were made: there were 449 margin calls made in June 2021; by the March 2022 quarter – on the RBA's stats alone – this had more than doubled to 944 margin calls, or about 1 per cent of all bank customers.

The sale of ANZ's margin lending business to Bendigo and Adelaide Bank shows that at least one of the majors has read the tea leaves and is quitting the business, while BEN, as Australia's fifth largest retail bank, clearly believes it can swing momentum back its way.

The deal, as announced by the two banking groups, will boost BEN's margin loans portfolio to more than $2 billion – or around the same size of a decade ago.