CHOICE concerned about Westpac and St George merger

Wayne Swan

Consumer group CHOICE has raised concerns that the proposed merger between Westpac and St George has the potential to significantly reduce competition in the banking sector.

In an announcement yesterday, CHOICE said parts of the banking industry were not competitive at present and should be encouraged to be more competitive.

“We will continue to raise the issue of competition throughout this process,” CHOICE media spokesperson Christopher Zinn told Money Management.

While some market analysts will see benefits for shareholders from the proposed merger, it is important to protect the interests of both consumers and existing Westpac and St George customers, he said.

CHOICE expressed particular concern that St George’s high customer service standards could be lost if the merger proceeds.

CHOICE also highlighted late credit card payment and exit fees from mortgages as areas that showed there was not enough competition between the major banks.

The merger has to be approved by the Australian Competition and Consumer Commission, Australian Prudential Regulation Authority and the Federal Treasurer, Wayne Swan, before it can proceed.