The Changing Financial Services Market in Australia

Like other developed countries Australia has seen intensifying competition between financial institutions as a result of the combined pressures of economic and social change, deregulation of financial systems and the introduction of new technology. Increased competition has led to a blurring of the traditional boundaries between institutions, changes in market structures and a proliferation of new services and products. A new awareness of the role and importance of marketing in the services as something more than advertising and selling has arisen. The Final Report of the Committee of Enquiry into the Australian Financial System (the Campbell Committee) in 1981 recommended almost total deregulation. Any necessary government intervention in the system should be by market methods, not direct controls. The effect has been most noticeable on banks and life assurance. The consumer will benefit from deregulation with a wider range of choice, but it may bring about job losses through new technology and poorer standards of service may arise. Its economic effects are feared. Eventually the need for legislation may arise again.