NAB to Modify its Personal Banking Strategy

Submitted by Jim Thesiger on 20 July, 2009 - 04:43

One of the largest banks of Australia, National Australia Bank (NAB) has admitted that currently it is not performing up to the standard in the personal banking sector and might come up with a different strategy to pursue its targeted growth. According to the NAB authority, it is a not just a niche strategy. Lisa Gray, the group executive of personal banking have admitted that the company is to go for significant modifications and understands that it is now necessary to come up with something new.

The division of personal banking of NAB has been suffering for a long time due to lack of investment. According to the Australian Prudential Regulation Authority, National Australia Bank placed last among four of the leading banks of the country both in household deposits and credit cards.

As far as the Mortgage Brokers are concerned, NAB was previously found to be uncompetitive about the price. However, NAB was much more intensely priced since last February and went for introducing the star rating system to rank the mortgage brokers. Through this new system, NAB is hoping to get closer to the potential brokers.

Recently NAB went for a join venture with Cuscal to create a giant network that involves around 3100 ATMs which is seen as another initiative taken by the bank to upgrade its distribution channels. NAB also went for rationalising its overall branch network by investing more in some of its outlets while closing some others.

Even though NAB is the leading bank in personal lending but it is ranked third in home lending where its market share dropped to 14.4 percent recently from 16.4 percent in May, 2007. However, the bank claims that it has a stronger position in the micro business, mass affluent market and in the technology based “do it yourself” banking. In her statement, Ms. Gray mentioned that the bank is planning to go for different strategies to invest in these three sectors.