MENU

Westpac not concerned by retailer threat

Although Wesfarmers (ASX: WES) Coles business recently applied for a banking license from the Australian Prudential Regulation Authority, Westpac (ASX: WBC) has shrugged off concerns that the supermarkets could pose as a threat to the banking industry.

Brian Hartzer, Westpac’s chief executive of Australian financial services, believes that although the prospect of Coles being allowed to enter the market would mean more alternatives for customers, it is the customer service provided by the banks that should retain customers.

Hartzer said, “It doesn’t concern what we’re trying to do, which is a relationship-oriented approach recognising that money is a scary topic for most people… We’re not interested in flogging products, we’re interested in building relationships.”

On the other hand, Graeme Samuel, the former ACCC chief, believes that the move by retailers into banking will benefit customers in that a wider array of products will be on offer, which would prompt the banks towards innovation and even greater customer service.

If Coles’ move proves to be successful, it is expected that rival Woolworths (ASX: WOW) could soon follow suit.

Think each of these companies are overpriced? Perhaps you’ll be interested in our #1 dividend-paying stock instead. Discover The Motley Fool’s favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of “The Motley Fool’s Top Dividend Stock for 2013-2014.”

More reading


Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned in this article.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!