Australia's banking sector dominated by the Big FourBank acquisitions throughout the 70s and 80s led to a few larger banks. Due to growing concern and political pressure regarding the shrinking number of large banks operating in the market, the Australian government adopted the "four pillars policy" in 1990. The policy was implemented to stop mergers between the country's Big Four banks. Today, the Big Four banks are ANZ Bank, Commonwealth Bank, National Australia Bank, and Westpac, with CommBank leading the pack with a market capitalization of 168 billion Australian dollars. With many smaller banks also providing financial services, most banking consumers are satisfied with their bank in the country.
Banking on technologyThe future of banking in Australia will change drastically over the coming decade. Banking services are already accessible online, with the number of active online banking users around the world set to continue to soar in the coming years. Among other things, mobile banking apps offer users the ability to transfer money instantly, set up and manage personal budgets and savings goals, and automate bill payments with the touch of a button, and often on a 24/7 basis.
The evolving financial technology (fintech) sector will likely lead to changes in the industry, while demographic, socio-economic, and regulation factors will also play a significant role in shaping the banking industry across the country. The Internet of Things, cloud computing, artificial intelligence, and 5G are just a few of the technological capabilities predicted to impact the banking sector in the coming years.