Citi joins the business banking battle
You wouldn't know it from the sentiment and insolvency data, but business banking is the hottest area of competition, and not just based on the price of lending. Citi, for one, is targeting businesses with offshore ambition.
With business banking shaping up as the next battleground, it’s not just the big four and Judo Bank in the fray. Increasingly, foreign banks are involved — notably Citi and HSBC — as well as AMP and private credit.
Upon his appointment as Westpac CEO last week, Anthony Miller highlighted business banking as a prime opportunity, adding, "There’s a lot of ambition we have there to grow".
Traditional market leaders in the sector, National Australia Bank and Commonwealth Bank, have both re-emphasised their commitment, while ANZ has re-established commercial banking as a separate division. Meanwhile, Judo has been the best-performing bank stock over the last quarter.
But not all competition is head-on. Citi in Australia has also beefed up its commitment to the sector, with a specific focus on businesses looking internationally.
