National Australia Bank’s three-decade reign as Australia’s biggest business bank may be nearing its end, as Commonwealth Bank capitalises on its vast customer base and strong position in the payments market.
NAB has led the sector since the early 1990s, when ANZ lost its dominance in the small and medium-sized business segment following a financial crisis that nearly saw it taken over by NAB.
According to APRA data, NAB still holds a solid lead in business lending — 21.2% compared with CBA’s 18.9% — but in critical areas such as main financial institution (MFI) relationships, deposits and transaction banking, CBA has all but caught up.
Jarden analyst Matt Wilson raised the question in a client note: “NAB has dominated business banking for 35 years — is it losing its mojo?”
