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Google Scares Aussie Banks
mask.of.sanity writes "Google could be the biggest threat to Australia's big four banks because of the trust online users place in it and its ability to engage with customers, banking executives say. They told an audience from the finance sector that companies like Google and PayPal are more responsive and trusted than banks, and cited emerging technology with an emphasis on online applications as a means for the smaller credit unions to challenge the position of incumbent banks. It's welcome news for Australia's credit unions: the nation's banks have taken turns in being the first to lift interest rates above the official reserve bank rate, with others collectively following suit, leading some to speculate they are in collusion."
When you put up fees and interest rates well above the RBAs increase, make up some excuse about not having enough income and then post profits in the billions of dollars, people tend not to trust what you say.
With most Australian banks I can walk into a branch to address issues with my account. There are plenty of examples of people dealing with paypal and google where something goes wrong (say their account is suspended) and there is absolutely nothing they can do to make contact and fix the issue.
I don't think Australian banks should worry until their competition set up "bricks and mortar" premises.
http://michaelsmith.id.au
Australia's banks must be pretty bad if people trust PayPal more.
Perhaps there's some cause and effect going on there. Companies that are more responsive to customer demands and concerns are, in my experience, more trusted by the customers. Perhaps the banks have already figured out how to compete and just don't realize it yet because being competitive cuts into profit margins.
Being uncompetitive is far more profitable until competition comes and ruins everything.
Perhaps there's some cause and effect going on there. Companies that are more responsive to customer demands and concerns are, in my experience, more trusted by the customers. Perhaps the banks have already figured out how to compete and just don't realize it yet because being competitive cuts into profit margins.
You have to wonder just how bad these Australian banks are when PayPal is "more responsive and trusted".
PAYPAL?!?!?! "more responsive and trusted"!!?!?!
Is dealing with these banks like handing your money over to the first meth fiend you can find laying in a ditch?
I'm currently earning a 6.51% on the cash that is not invested (probably will raise another 0.25% at least in the next few weeks). So, you are right. I am earning a nice, guaranteed rate on idle cash deposits. Not as good as shares, after the biggest drop in 80 years, but a bankable rate.
It's a predictable two edged sword ... those that are debt addicted suffer, those that are not are happy.
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Only a joke in the sense of being TRUE , but still funny.
While they might not have colluded in the legal sense, they have colluded in the practical sense.
Why the law defined it as "all of their CEOs had to get into one physical room at the same actual time and at least verbally and preferably written down on some kind of physical medium, they agreed to follow a common set of practices in order to screw the market over".
The end result is the same, The Banks have NO REAL COMPETITION and NO LEGAL ENFORCEMENT preventing them from SCREWING THEIR CUSTOMERS *to an unreasonable extent*.
Seriously folks, I'm all for "they're a business, they need to make a profit" but continuing to make *record profits* during the GFC AND still continuing to whine about HOW HARD IT IS BEING A BANK is just a tad unbelievable.
Visit CryptoGnome in his home.
Those aren't words one would usually hear associated with Paypal. Their customer service is rather poor in my experience so I shiver to think what bank customer service must be like in Australia.
If PayPal are more trusted than the banks that makes it very clear just how bad the banks are. I wouldn't trust PayPal with toy money my nephew left down the back of the sofa.
I also used to complain a lot about paypal and the ridiculous fees they impose to some transfers and then I compared to what banks offers. It was in 2009. These banks apparently STILL DON'T KNOW THAT INTERNET EXISTS. Paypal may have exaggerated fees, but regular banks have blatant racketing schemes (that you have to sign for 4 years minimum). It is actually that bad and Paypal IS very competitive compared to the usual bank sharks.
The Wise adapts himself to the world. The Fool adapts the world to himself. Therefore, all progress depends on the Fool.
I'm replying at the top for one reason - because if I haven't seen this in the first few replies, it's dying to be said:
If you're less responsive and even less trusted than PayPal - you my friend, are royally screwed.
Karma: Chameleon (mostly due to the fact that you come and go).