Some time not long ago I mentioned that our traditional Big 4 banks would face new competitive pressures alongside increasingly thinner margins as rates continue to move south. The growth the Big 4 enjoyed in the past is slowly becoming history even as they re-invent themselves, as new neobanks and fintechs are coming into the market. And this is why Assumptions change, fluid not static and the need to move with the times.
But for the life of me, while I can understand the prudential regulators desire to introduce competition into the market place by giving new banking licences , and reducing the Big 4's monopoly, this is just weakening the capacity of the Big 4 to withstand the next financial crisis onslaught. And those new neobanks like Volt Bank will only have a small base and may not even be in a strong position when the crisis comes. So overall we are weakening the banking industry.
