The Finance sector's operating environment was previously characterised by record-low interest rates. Nonetheless, high inflation prompted the Reserve Bank of Australia (RBA) to hike the cash rate from May 2022 onwards. This shift allowed financial institutions to impose higher loan charges, propelling their revenue. Banks raised interest rates quicker than funding costs in the first half of 2022-23, boosting net interest margins. However, sophisticated competition and digital disruption have reshaped the sector and nibbled at the Big Four's dominance, weighing on ADIs' performance. In the first half of 2025, the fierce competition has forced ADIs to trim lending rates even ahead of RBA moves to protect their slice of the mortgage market. Higher cash rates initially widened net interest margins, but the expiry of cheap TFF funding and a fierce mortgage war are now compressing spreads, weighing on ADIs' profitability. Although ANZ's 2024 Suncorp Bank takeover highlights some consolidation, the real contest is unfolding in tech. Larger financial institutions are combatting intensified competition from neobanks and fintechs by upscaling their technology investments, strengthening their strategic partnerships with cloud providers and technology consulting firms and augmenting their digital offerings. Notable examples include the launch of ANZ Plus by ANZ and Commonwealth Bank's Unloan. Meanwhile, investor demand for rental properties, elevated residential housing prices and sizable state-infrastructure pipelines have continued to underpin loan growth, offsetting the drag from weaker mortgage affordability and volatile business sentiment. Overall, subdivision revenue is expected to rise at an annualised 8.3% over the five years through 2024-25, to $524.6 billion. This growth trajectory includes an estimated 4.8% decline in 2024-25 driven by rate cuts in 2025, which will weigh on income from interest-bearing assets. The Big Four banks will double down on technology investments and partnerships to counter threats from fintech startups and neobanks. As cybersecurity risks and APRA regulations evolve, financial institutions will gear up to strengthen their focus on shielding sensitive customer data and preserving trust, lifting compliance and operational costs. In the face of fierce competition, evolving regulations and shifting customer preferences, consolidation through M&As is poised to be a viable trend for survival and growth, especially among smaller financial institutions like credit unions. While rate cuts will challenge profitability within the sector, expansionary economic policies are poised to stimulate business and mortgage lending activity, presenting opportunities for strategic growth in a dynamic market. These trends are why Finance subdivision revenue is forecast to rise by an annualised 1.1% over the five years through the end of 2029-30, to $554.9 billion

India Foreign Banks: Term Loan Rate: High: Commonwealth Bank of Australia data was reported at 9.900 % pa in Dec 2016. This records a decrease from the previous number of 11.400 % pa for Sep 2016. India Foreign Banks: Term Loan Rate: High: Commonwealth Bank of Australia data is updated quarterly, averaging 13.000 % pa from Sep 2010 (Median) to Dec 2016, with 26 observations. The data reached an all-time high of 14.000 % pa in Mar 2013 and a record low of 9.900 % pa in Dec 2016. India Foreign Banks: Term Loan Rate: High: Commonwealth Bank of Australia data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Interest and Foreign Exchange Rates – Table IN.MB041: Lending Rate: Other than Export Credit: Term Loan Rate: High.

The Reserve Bank of Australia's (RBA) cash rate target in-part determines interest rates on financial products.

India Base Rate: Foreign Banks: Commonwealth Bank of Australia data was reported at 9.100 % pa in Dec 2016. This stayed constant from the previous number of 9.100 % pa for Sep 2016. India Base Rate: Foreign Banks: Commonwealth Bank of Australia data is updated quarterly, averaging 9.500 % pa from Sep 2010 (Median) to Dec 2016, with 26 observations. The data reached an all-time high of 10.000 % pa in Mar 2013 and a record low of 8.000 % pa in Mar 2011. India Base Rate: Foreign Banks: Commonwealth Bank of Australia data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Interest and Foreign Exchange Rates – Table IN.MB002: Base Rate.

Mortgage lenders are dealing with the RBA's shift to a tighter monetary policy, as it fights heavy inflation. Since May 2022, the RBA has raised the benchmark cash rate, which flows to interest rates on home loans. This represents a complete reversal of the prevailing approach to monetary policy taken in recent years. Over the course of the pandemic, subdued interest rates, in conjunction with government incentives and relaxed interest rate buffers, encouraged strong mortgage uptake. With the RBA's policy reversal, authorised deposit-taking institutions will need to balance their interest rate spreads to ensure steady profit. A stronger cash rate means more interest income from existing home loans, but also steeper funding costs. Moreover, increasing loan rates mean that prospective homeowners are being cut out of the market, which will slow demand for new home loans. Overall, industry revenue is expected to rise at an annualised 0.4% over the past five years, including an estimated 2.2% jump in 2023-24, to reach $103.4 billion. APRA's regulatory controls were updated in January 2023, with new capital adequacy ratios coming into effect. The major banks have had to tighten up their capital buffers to protect against financial instability. Although the ‘big four’ banks control most home loans, other lenders have emerged to foster competition for new loanees. Technological advances have made online-only mortgage lending viable. However, lenders that don't take deposits are more reliant on wholesale funding markets, which will be stretched under a higher cash rate. Looking ahead, technology spending isn't slowing down, as consumers continue to expect secure and user-friendly online financial services. This investment is even more pressing, given the ongoing threat of cyber-attacks. Industry revenue is projected to inch upwards at an annualised 0.8% over the five years through 2028-29, to $107.7 billion.

Banks are grappling with a transition from years of loose monetary policy to tighter financial conditions. Soaring inflation prompted an RBA pivot in the face of surging energy, housing and food prices. The RBA hiked the cash rate multiple times from May 2022 to November 2023. Prior to this, banks cashed in on high residential housing prices, with low interest rates and government schemes encouraging strong mortgage uptake over the course of the pandemic. APRA also eased the interest rate buffer in 2019, before raising it in 2021. Interest hikes have pushed up banks' incomes over the past few years. Meanwhile, banks' interest deposit expenses and funding costs have also risen while elevated interest rates have dampened industry profit margins over the past few years. Overall, industry revenue is expected to expand at an annualised 9.3% over the five years through 2024-25, to $259.2 billion. This includes an anticipated slump of 8.3% in 2024-25, as inflationary pressure shows signs of easing, the cash rate easing, weighing on interest income. As banks passed on cash rate rises through higher interest rates, the RBA's policy approach has had a cascading effect on the economy. There’s a lag before these hit customers, with some fixed-rate mortgages gradually rolling over through 2023 and 2024. Banks are securing more interest income from existing loans but must manage inflated borrowing costs and bigger payouts on deposit accounts. Residential housing prices are set to stabilise, while heavy mortgage payments will price out some potential homeowners. Banks will be monitoring consumer spending amid inflationary pressures and spiralling borrowing costs. APRA has strengthened rules for managing interest rate risks, effective from October 2025. The updated Prudential Standard APS 117 requires major financial institutions to implement robust frameworks to manage these risks effectively. The big four will need to keep up with rapid technological change, managing cyber security as consumers embrace online financial services. Competition isn't easing up as smaller technology-focused firms disrupt the finance sector and foreign banks tap into the Australian market. Revenue is projected to climb at an annualised 0.3% over the next five years, to total $262.6 billion in 2029-30.

Revenue in the Business Financing industry has been highly volatile over the past five years, reflecting swings in interest rates, investment appetite and economic conditions. Industry revenue has grown strongly at an annualised rate of 16.9% through the end of 2025-26, with lenders benefiting from the Reserve Bank of Australia’s rapid rate hikes during 2022-23. Higher lending rates significantly lifted the value of repayments and widened net interest margins, pushing revenue to an estimated $83.1 billion in 2025-26. However, this includes an estimated 6.8% decline in 2025-26, as early interest rate cuts and softer business confidence begin to reduce repayment values and dampen new borrowing activity. Profit margins have narrowed even as revenue surged. Intense competition from fintech lenders and neobanks has forced traditional banks and non-bank financiers to invest heavily in digital platforms, compliance and cybersecurity. These outlays, combined with rising loan loss provisions as arrears edged higher, have weighed on profitability. Margins that exceeded 20% earlier in the decade are now sitting closer to the low teens, underscoring the pressures on earnings despite revenue growth. The challenge for banks is balancing competitive pricing and digital innovation against the rising cost of compliance and risk management. Looking ahead, revenue is forecast to rise modestly at an annualised 1.0% through the end of 2030-31, reaching $87.4 billion. Lower interest rates are projected to constrain repayment values, keeping revenue growth subdued compared with the recent past. At the same time, greater use of retained earnings among large corporates and tighter risk standards for SMEs will limit loan growth. However, opportunities remain in sectors like logistics, health care and renewable energy, where businesses are investing in productivity gains and transition projects. Profitability is set to remain under pressure as lenders contend with high compliance costs and more cautious underwriting, but financers that adapt their products to support digital transformation and capital investment will be best placed to capture demand.

The Credit Card Issuance industry has contracted as the number of cards issued and balances accruing interest have fallen. Issuers have faced significant competition from other forms of payment like debit cards and BNPL services. The monthly value of debit card transactions has continued to surpass the monthly value of credit card transactions thanks to initiatives like the Reserve Bank of Australia's (RBA) least-cost routing initiative. BNPL services have also gained popularity with younger consumers who constitute a significant market for online sellers. That's why revenue is set to weaken by an annualised 5.3% over the five years through 2024-25, to $7.6 billion. To compete with sophisticated competition, credit card issuers have beefed up their reward and referral programs and integrated online payment, service and customer acquisition platforms into their operations. The Big Four banks dominate the industry and NAB's acquisition of Citigroup's Australian consumer banking business has expanded its collective market share. Economic conditions tied to inflationary pressures have ravaged consumer sentiment and appetites for spending through credit. Some customers have opted to pay down debt instead and have avoided taking on more. A sharp climb in interest rates over the past few years has compounded this dynamic, which is set to constrain industry performance in 2024-25, with revenue declining by an anticipated 0.9%. Credit card issuers' performance will improve over the coming years as economic conditions recover. Credit card issuance revenue is projected to expand at an annualised 2.0% through the end of 2029-30, to total $8.4 billion. The RBA is forecast to slash the cash rate once inflation falls within the central banks' target band, lifting credit card issuer profit margins as funding costs drop. Alternative payment methods, like BNPL services, debit transactions and other fintech solutions, are on track to sap away demand for credit cards. However, easing inflationary pressures and lower interest rates over the medium term are set to spur household consumption expenditure and credit card use. In response to the fierce competition, issuers will emphasise innovation and enhance their rewards and points systems to entice consumers.

The Judo Bank Australia Services PMI fell to 50.3 in June 2023 from 52.1 in the previous month, final data showed. It marked the third consecutive month of expansion in the Australian services sector, albeit the slowest, driven by softer growth in new businesses which led to a slower rise in business activity. Firms continued to hire additional staff to cope with the increased workload. Amid higher demand, inflationary pressures intensified within the service sector. Input cost inflation climbed due to higher interest rates, wages and energy costs. Businesses remained broadly optimistic with regards to future activity but pared back their optimism. This dataset provides - Australia Commonwealth Bank Services PMI- actual values, historical data, forecast, chart, statistics, economic calendar and news.

India Foreign Banks: Term Loan Rate: Low: Commonwealth Bank of Australia data was reported at 9.900 % pa in Dec 2016. This records an increase from the previous number of 9.150 % pa for Sep 2016. India Foreign Banks: Term Loan Rate: Low: Commonwealth Bank of Australia data is updated quarterly, averaging 10.125 % pa from Sep 2010 (Median) to Dec 2016, with 26 observations. The data reached an all-time high of 14.000 % pa in Jun 2012 and a record low of 9.150 % pa in Sep 2016. India Foreign Banks: Term Loan Rate: Low: Commonwealth Bank of Australia data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Interest and Foreign Exchange Rates – Table IN.MB040: Lending Rate: Other than Export Credit: Term Loan Rate: Low.

Bank Bill Swap Rate in Australia increased to 3.67 percent on Monday December 1 from 3.66 in the previous day. This dataset includes a chart with historical data for Australia Bank Bill Swap Rate.

India Foreign Banks: Demand Loan Rate: Low: Commonwealth Bank of Australia data was reported at 9.250 % pa in Sep 2016. This records an increase from the previous number of 8.950 % pa for Jun 2016. India Foreign Banks: Demand Loan Rate: Low: Commonwealth Bank of Australia data is updated quarterly, averaging 9.600 % pa from Sep 2011 (Median) to Sep 2016, with 20 observations. The data reached an all-time high of 12.000 % pa in Sep 2012 and a record low of 8.950 % pa in Jun 2016. India Foreign Banks: Demand Loan Rate: Low: Commonwealth Bank of Australia data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Interest and Foreign Exchange Rates – Table IN.MB036: Lending Rate: Other than Export Credit: Demand Loan Rate: Low.

India Foreign Banks: Demand Loan Rate: At Least 60% Business: High: Commonwealth Bank of Australia data was reported at 9.250 % pa in Sep 2016. This records a decrease from the previous number of 9.650 % pa for Jun 2016. India Foreign Banks: Demand Loan Rate: At Least 60% Business: High: Commonwealth Bank of Australia data is updated quarterly, averaging 10.650 % pa from Sep 2011 (Median) to Sep 2016, with 20 observations. The data reached an all-time high of 12.000 % pa in Sep 2012 and a record low of 9.250 % pa in Sep 2016. India Foreign Banks: Demand Loan Rate: At Least 60% Business: High: Commonwealth Bank of Australia data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Interest and Foreign Exchange Rates – Table IN.MB039: Lending Rate: Other than Export Credit: Demand Loan Rate: At Least 60% Business: High.

India Foreign Banks: Cash Credit Rate: Low: Commonwealth Bank of Australia data was reported at 10.750 % pa in Jun 2016. This stayed constant from the previous number of 10.750 % pa for Mar 2016. India Foreign Banks: Cash Credit Rate: Low: Commonwealth Bank of Australia data is updated quarterly, averaging 11.500 % pa from Sep 2010 (Median) to Jun 2016, with 24 observations. The data reached an all-time high of 14.000 % pa in Sep 2012 and a record low of 10.650 % pa in Dec 2015. India Foreign Banks: Cash Credit Rate: Low: Commonwealth Bank of Australia data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Interest and Foreign Exchange Rates – Table IN.MB032: Lending Rate: Other than Export Credit: Cash Credit Rate: Low.

India Foreign Banks: Cash Credit Rate: At Least 60% Business: High: Commonwealth Bank of Australia data was reported at 10.750 % pa in Jun 2016. This records a decrease from the previous number of 12.650 % pa for Mar 2016. India Foreign Banks: Cash Credit Rate: At Least 60% Business: High: Commonwealth Bank of Australia data is updated quarterly, averaging 13.000 % pa from Sep 2010 (Median) to Jun 2016, with 24 observations. The data reached an all-time high of 14.000 % pa in Mar 2013 and a record low of 10.750 % pa in Jun 2016. India Foreign Banks: Cash Credit Rate: At Least 60% Business: High: Commonwealth Bank of Australia data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Interest and Foreign Exchange Rates – Table IN.MB035: Lending Rate: Other than Export Credit: Cash Credit Rate: At Least 60% Business: High.

India Foreign Banks: Term Loan Rate: At Least 60% Business: Low: Commonwealth Bank of Australia data was reported at 9.900 % pa in Dec 2016. This records an increase from the previous number of 9.250 % pa for Sep 2016. India Foreign Banks: Term Loan Rate: At Least 60% Business: Low: Commonwealth Bank of Australia data is updated quarterly, averaging 10.200 % pa from Sep 2010 (Median) to Dec 2016, with 26 observations. The data reached an all-time high of 14.000 % pa in Jun 2012 and a record low of 9.250 % pa in Sep 2016. India Foreign Banks: Term Loan Rate: At Least 60% Business: Low: Commonwealth Bank of Australia data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Interest and Foreign Exchange Rates – Table IN.MB042: Lending Rate: Other than Export Credit: Term Loan Rate: At Least 60% Business: Low.

India Marginal Cost of Fund Based Lending Rate: 1 Year: Foreign Banks: Commonwealth Bank of Australia data was reported at 9.250 % in Feb 2017. This stayed constant from the previous number of 9.250 % for Jan 2017. India Marginal Cost of Fund Based Lending Rate: 1 Year: Foreign Banks: Commonwealth Bank of Australia data is updated monthly, averaging 9.250 % from Apr 2016 (Median) to Feb 2017, with 11 observations. The data reached an all-time high of 9.400 % in Sep 2016 and a record low of 8.750 % in Apr 2016. India Marginal Cost of Fund Based Lending Rate: 1 Year: Foreign Banks: Commonwealth Bank of Australia data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Interest and Foreign Exchange Rates – Table IN.MB005: Marginal Cost of Fund Based Lending Rate (MCLR): Monthly.

India Foreign Banks: Cash Credit Rate: High: Commonwealth Bank of Australia data was reported at 10.750 % pa in Jun 2016. This records a decrease from the previous number of 12.650 % pa for Mar 2016. India Foreign Banks: Cash Credit Rate: High: Commonwealth Bank of Australia data is updated quarterly, averaging 13.000 % pa from Sep 2010 (Median) to Jun 2016, with 24 observations. The data reached an all-time high of 14.000 % pa in Mar 2013 and a record low of 10.750 % pa in Jun 2016. India Foreign Banks: Cash Credit Rate: High: Commonwealth Bank of Australia data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Interest and Foreign Exchange Rates – Table IN.MB033: Lending Rate: Other than Export Credit: Cash Credit Rate: High.

Foreign Banks: Term Loan Rate: Low: Commonwealth Bank of Australia在2016-12达9.900 % 每年，相较于2016-09的9.150 % 每年有所增长。Foreign Banks: Term Loan Rate: Low: Commonwealth Bank of Australia数据按季度更新，2010-09至2016-12期间平均值为10.125 % 每年，共26份观测结果。该数据的历史最高值出现于2012-06，达14.000 % 每年，而历史最低值则出现于2016-09，为9.150 % 每年。CEIC提供的Foreign Banks: Term Loan Rate: Low: Commonwealth Bank of Australia数据处于定期更新的状态，数据来源于Reserve Bank of India，数据归类于India Premium Database的Interest and Foreign Exchange Rates – Table IN.MB040: Lending Rate: Other than Export Credit: Term Loan Rate: Low。

Foreign Banks: Cash Credit Rate: High: Commonwealth Bank of Australia在2016-06达10.750 % 每年，相较于2016-03的12.650 % 每年有所下降。Foreign Banks: Cash Credit Rate: High: Commonwealth Bank of Australia数据按季度更新，2010-09至2016-06期间平均值为13.000 % 每年，共24份观测结果。该数据的历史最高值出现于2013-03，达14.000 % 每年，而历史最低值则出现于2016-06，为10.750 % 每年。CEIC提供的Foreign Banks: Cash Credit Rate: High: Commonwealth Bank of Australia数据处于定期更新的状态，数据来源于Reserve Bank of India，数据归类于India Premium Database的Interest and Foreign Exchange Rates – Table IN.MB033: Lending Rate: Other than Export Credit: Cash Credit Rate: High。