Credit Card Competition Ramps In Australia
Stephen Bartholomeusz writes for the Sydney Morning Herald about the launch of HBOS-owned BankWest's new low rate credit card along with similar offerings from non-banks Virgin Money, GE Money's Wizard and John Symond's Aussie Home Loans.
The fresh outbreak of competition in credit cards reflects the continued unbundling of the credit card product that started with the Reserve Bank's reforms to interchange fees. Those reforms stripped hundreds of millions of dollars from the banks and triggered a repricing of card features, including loyalty programs, that made the cost and benefits of the cards far more transparent. Customers are now paying higher fees for fewer rewards, which created the opportunity for rival institutions to compete purely on price.
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