Payday Loans

National Australia Bank is vowing “‘more give and less take”’ in  its latest advertising blitz following on from the sentiment established  by the ANZ which is taking customers away from the evils of “‘banking world”’ in its recent campaign. The consumer message is clear:, not only have banks been listening to the backlash but also they are now willing to atone and make a commitment to change. While the marketing pledge is refreshing, it does have the whiff of the perennial cheating husband. Confronted by their his indiscretions (patchy customer satisfaction, customer attrition), the rogue seeks help (ad agency) buys some bling (drops fees) and promises to change. While Commonwealth Bank is still dining out on self-deprecation to get through the storm, NAB and ANZ have listened to their therapists  and are taking their medicine. Rising interest rates and the GFC have done little to bolster the banking sector’s, particularly the Big Four’s, reputations with consumers but the effectiveness of this  new warm and fuzzy approach will be in the day- to- day delivery and the longevity of the commitment. “Those advertising campaigns are making a promise and when you do that that you raise the stakes,” says Forrester Research senior analyst Steven Noble. Noble adds that this is not just a matter of changing public perception but backing it up with staff commitment and resources and authentic customer engagement. With banks enjoying a low benchmark of customer satisfaction, this new pledge means that consumers will start looking for signs of satisfaction rather than just being happy with not being unsatisfied.  As a result a lot of customers are going to start analysing their banks, Noble says, and not based simply on customer service quality but experience. “There is an increasing focus on the customer experience, not just in the banking sector but also in hospitality, travel and telecommunications. The main driver in 2010 will be on significant customer experience,” he predicts. The ANZ’s $ 15 million re-branding campaign launched in October last year put   customer-centricity back in vogue. The global brand-building exercise which that was developed with M&C Saatchi introduced the tag line “We live in your world”. ANZ has been recognised  for its campaign, which  positioned most banks as outdated, inflexible and regimented as represented by “ Barbara from Banking World”, and posits the new look ANZ as completely tuned in to consumer needs. Brand Behaviour MD Karl Treacher notes that while these claims and brand promises are easily constructed, delivering on them consistently at a time where when financial pressures are about to rise significantly, may prove problematic. He applauds the bank’s’ attempts to differentiate themselves, particularly the ANZ campaign which he views as “quite a smart move, the execution was quite intelligent and it acknowledges that customer frustrations are real.” Treacher adds that the NAB campaign and its tag line reflects a bank which that has already been delivering on its pledge, despite being the lowest scoring among the big 4Big Four on customer service. “They have been somewhat of a quiet achiever in terms of customer centric activity in areas such as not passing on interest rate hikes and dropping fees.” Both Treacher and Noble agree that this new customer enriched marketing ethos is not a fad and signals a genuine revived approach to customer experience. Treacher warns however that it may take two to three years to see which bank actually yields the results. “The consumer is entrenched in the idea that banks let us down. The public will be cynical that banks will actually be accountable for their promise and deliver on it.”  Read More →

A Payday loans is a huge benefit for anyone who has experienced financial problems and knows what it’ like to be caught in the middle of the month without cash. Many of us live from one pay day to the next, running out of cash during the month and having no one to turn to until our next paycheck. Who hasn’t experienced an unforeseen financial emergency such as school fees, an unexpected medical bill or car repair just when we can least afford it? When this happens the financial stress of being without funds can be so crushing we just don’t know which way to turn or who to ask for help. That’s when the Payday loan can become a real lifesaver!  Read More →

PM to announce mortgage relief plan Freeze on payments for hardship cases Big four banks in landmark agreement PRIME Minister Kevin Rudd will today announce 12 months of mortgage relief for the unemployed. In an unprecedented move, Australia’s big-four banks have reached the landmark agreement to help prevent struggling families from losing their homes. Part of a comprehensive package of assistance for workers, the Commonwealth, National Australia, Westpac and ANZ banks will put a freeze on mortgage payments in hardship cases, The Sunday Telegraph reports. Mr Rudd will announce the welcome relief at a community employment forum in Melbourne in front of 150 people, some of whom have recently been retrenched. In his speech, the Prime Minister says the stress of paying mortgage and car payments are “real bottom-line concerns around kitchen tables right across Australia”. “The immediate problem facing many families whose breadwinners have lost their jobs is the anxiety and fear that arises from, ‘How do I pay my mortgage, how do I pay off my car?” Mr Rudd says.  “That’s why, some time ago, I asked the Treasurer to negotiate an agreement with Australia’s big-four banks on a comprehensive package of assistance to workers who lose their jobs.” Mr Rudd says the move will provide for a better handling of borrowers in hardship through job loss. He says banks will postpone mortgage payments for up to 12 months, with interest to be capitalised into the loan. The banks are also considering extending the period of mortgage contracts and reducing payment amounts. Banks also indicated that on other loans, including car loans, where appropriate, they would consider interest-only repayment options. In another lifeline, the banks will also consider waiving fees in hardship cases. “Of course, these options won’t be appropriate in every case, and banks will make assessments based on the borrower’s ability to meet new contractual obligations,” he says. “But the Government’s purpose in its negotiations with the banks has been clear – to ask the banks to provide maximum flexibility for borrowers suffering temporary hardship. through enforced unemployment for the 12 months ahead. “I’d like to thank the banks for the goodwill they have demonstrated in this area.’  However, the government were not able to explain when these measures would be put into effect and exactly who would be affected.  Read More →

Tyndall Investment Management has launched a ‘pure cash’ fund designed for institutional investors caught out by cash strategies that weren’t true to label. Enhanced cash. Cash plus. Cash alpha. You name it, some of these funds with the label ‘cash’ weren’t what they seemed – but investors discovered that only after the GFC. “During the global financial crisis it became apparent that many cash funds were investing in assets such as mortgage-backed securities or asset-backed commercial paper that potentially boosted returns but hurt liquidity, and therefore attracted a level of risk that many investors were unaware of,” said Justin Cowper, head of institutional business at Tyndall/Suncorp Investment Management. “As such, many of these funds delivered negative returns, much to the investors’ surprise.” Despite being a new product, the fund already has funds under management of over $1.9 billion from both from internal sources as well as an external client.  Read More →

ANZ has emerged as the major bank most in favour with banking sector analysts after the latest round of interim and quarterly reports. Among the group of analysts who supply their recommendations to FinAnalysis, ANZ has improved its average rating from 2.6 two months ago and 2.3 a month ago to the current average rating of 2.2 (the scale is: 1 is a strong buy, 2 is a buy, 3 is a hold and 4 is a sell). Two of the brokers have ANZ as a strong buy. NAB has one broker recommending it as a strong buy, while Commonwealth and Westpac have no strong buy recommendations.  Read More →

Higher interest rates and worsening affordability are driving home buyers out of the market. Australian Bureau of Statistics figures published yesterday show that the number of finance commitments for owner-occupiers fell 7.9 per cent from December 2009 to January 2010 (using seasonally adjusted figures) and fell 21 per cent from last year’s peak in June. The number of finance commitments for owner-occupiers has fallen from 64,776 a month to 51,056 over a six month period. The value of finance commitments for owner-occupiers fell five per cent from December to January and fell 15 per cent from the September peak. In that period monthly loan values for owner-occupiers have fallen from $17.4 to $14.7 billion. www.bankingday.com  Read More →

According to recently published research results from stats compiled by CBA, generation Y have continued to spend up big despite the world financial crisis. Young Australians aged between 18 and 24, actually spent more during 2009 than in 2008. Report published has found that young people were less fearful of unemployment and had less debts due to fewer assets. Unless young people come to terms with budgeting and spending within their means they will become the generation of no home and high debts.  Read More →

THE global financial crisis barely registered with Generation Y. According research published today, the response of 18-24 year-old Australians to the imminent collapse of capitalism was to ignore it. The finding emerges from the Commonwealth Bank’s first Viewpoint Report, based on the experiences of 1.3 million customers. Viewpoint found that Gen Y’s spending increased 6.2 per cent in 2009, despite earnings growing only 2.5 per cent and job losses in the age group rising 13.6 per cent. Nonetheless, their outlook was the most optimistic of any demographic, with Gen X – aged 25 to 34 – increasing spending by only 2 per cent, even though their earnings grew 4.9 per cent and job losses rose by a relatively modest 7.3 per cent. Michael Blythe, the Commonwealth Bank’s chief economist, said that Australians in the 18-24 age group lacked experience of a full-blown recession. They were also less fearful of unemployment and had less debts due to fewer assets. “The GFC just didn’t affect their spending decisions as much as you would have expected,” Mr Blythe said. In contrast, 25-34-year-olds cut costs to save for a home. news.com.au   read more>>  Read More →

Bendigo and Adelaide Bank Ltd has followed the major banks and increased its variable home and business loans by 25 basis points. The increase, to be passed on to customers from March 9, matches the Reserve Bank of Australia’s quarter of a percentage point increase on the cash rate earlier this week. Bendigo Bank’s residential variable home loan rate will increase to 6.95 per cent per annum. Variable rates on the bank’s third party mortgages will also increase by 0.25 per cent per annum, while there will be an increase in interest paid on “a wide range” of deposits, it said.  Read More →

Putting some aside for a rainy day is back in vogue. A new survey has confirmed that saving is back in favour but finds that, despite good intentions, Australians are struggling to get into a regular habit. According to the latest Fin-Q survey from global financial services company Citi, 65 per cent of Australians say they would save extra cash if they had it, ahead of investing in various assets or even buying life insurance. Only Koreans had a stronger drive to put the extra cash into savings (at 77 per cent) in the survey of 5200 people in 11 Asia-Pacific countries. The result reported for Australia is more than 10 percentage points above the regional average. However, while more than one in two Koreans (52 per cent) say they save money from every pay, just 36 per cent of Australians put money aside each pay day. Respondents from Indonesia (49 per cent) and India and Singapore (both 46 per cent), also save more frequently than Australians. Credit card repayment habits also differ among the nationalities. Paying off the full monthly balance is more common among Koreans (87 per cent), Chinese and Taiwanese (both 78 per cent), compared with 58 per cent of Australians. Still, the apparent interest in saving is in line with statistics showing Australians are tending towards debit cards and away from credit. Market researchers have been reporting strong growth in the volume of purchases made using debit cards, especially since the advent of Visa and MasterCard debit cards that are able to be used online. In mid-2009, East & Partners reported that nearly 30 per cent of merchant sales were now paid for with debit cards, a “substantial” increase of 19 per cent in the space of six months. read more at BusinessDay.com.au  Read More →