Competition 'is rife between banks'

Steven Munchenberg – chief executive at the Australian Bankers' Association – believes that competition between the nation's banks is becoming increasingly intense.

Speaking to National Features, he suggested that lenders are doing their utmost to make themselves stand out from the crowd.

The government recently introduced new legislation that made it easier for Aussies to switch their bank accounts and this has forced institutions to offer incentives in order to persuade customers to ditch their current lender.

Banks have been particularly keen to promote their term deposits and many have resisted the urge to lower the interest rates attached to their products, even though the national cash rate has fallen to just 3.5 per cent.

Mr Munchenberg told the news provider: "Banks are also wanting to draw attention to themselves and make sure when customers are thinking of switching, they are the ones they switch to."

However, he also stated that it could still take a while before Aussies realise just how easy it has become to move their cash into a new bank account.

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