As banks continue to offer sweeteners to entice home loan customers, St George has upped its proposition to business banking customers.
The bank is offering business borrowers a pay back of up to 0.5% of the size of their business loan to switch to St George, up to $50,000. The move comes as new RBA figures show business lending fell 01.% in January, and 2.4% over the past 12 months as demand for business finance flagged. St George COO Andrew Moore has told the Australian Financial Review the Westpac-owned bank is looking to expand its business customer base, along with growing residential lending.
"We are looking to acquire new customers, which is a bit of a change from the approach at St George over the last few years, which have been dominated by the merger with Westpac and the global financial crisis," Moore said.
Moore said recent competitive moves among the banks signalled a fight for market share in an environment of waning demand for credit.
"Competition, whether it is in the home loan market, deposits or business lending, is as strong as it has ever been. Post-GFC, we are in a lower credit growth environment. To win business at the moment, you need to really fight harder for it and when there is low credit growth you have to take customers from competitors," Moore remarked.
A St George spokesman told Australian BrokerNews the business banking initiative will be available to borrowers who apply for new business finance of $250,000 or more by 31 July, and open their primary business transaction account with St George.
"The 'up to $50,000 towards switching right now' covers the cost to us of waiving your business finance establishment fees and the eligible costs to you of moving your business to us, in total up to 0.5% of the total amount of your new business finance, or $50,000 whichever is the lesser," the spokesman said.
St George has also made moves to intensify its residential mortgage lending, raising its LVR from 90% to 95% for new to bank customers and offering a 100 basis point discount off its standard variable rate for the first year of its Introductory Rate Home Loan. The bank has also tried to woo brokers by returning to paying trail commission on loans between 30 and 60 days in arrears.
(Source: Adam Smith | 28/03/2011 5:00:00 AM www.brokernews.com.au)
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