Perspectives
Article highlights
30 March 2026
Australia’s retail banking market has undergone significant transformation over the past four decades. Following a period of intense industry consolidation, it is once again being reshaped, as a focus on innovation unlocks a renewed era of competition and greater value for Australians.
In the early 1980s, the Australian banking sector looked, and operated, very differently to how it does today. A centralised approach to monetary policy saw the central bank and government control the exchange rate and directly influence lending activity across the economy while setting interest rate ceilings on lending and deposit products offered by local banks, which represented around half the market.1
It was against this backdrop that Macquarie introduced its first innovation to the Australian retail banking market. In 1980 – operating then as Hill Samuel Australia – it launched Australia’s first Cash Management Trust (CMT), which provided retail customers access to higher wholesale interest rates on deposits.2
“The launch of the CMT was a game changer for Australians in two ways,” says Ben Perham, Head of Personal Banking at Macquarie Bank. “It offered all savers access to the higher deposit rates that had previously been reserved for high-net-worth customers, and this competitive pressure forced increases for customers across the market.”
Seeking to drive even greater competition and dynamism, the Australian Government began deregulating the banking system at pace in the years that followed. The dollar was floated, interest rate ceilings on loans were removed, lending controls were lifted, and restrictions on deposits abolished. Foreign banks were allowed to operate in Australia for the first time, driving greater competition alongside the growing non-bank sector.3
We have invested in the best technology, and fostered a digital-first, customer-obsessed culture, to deliver the best possible digital experiences and touchpoints in the market.”
Ben Perham
Head of Personal Banking
Macquarie Bank
In 1985, Hill Samuel Australia secured an Australian banking licence and began operating as Macquarie Bank.
To support the growth of smaller players in the market, in 1993, Macquarie launched Australia’s first securitisation for non-bank lender originated mortgages. The value delivered to customers from this was dramatic, with home loan interest rates falling by around 2 per cent.4 Even customers who didn’t move to a non-bank lender benefited, as the competitive pressure saw home loan rates fall more broadly.
The expansion in the number of lenders active in the Australian market also provided the foundation for the fledgling mortgage broking industry, which would go on to cement itself as a powerful force driving greater value and choice for consumers.
Wendy Brown, Head of Broker Sales at Macquarie Bank, said “Right up until the early 1990s, mortgage broking was a niche industry. That all changed very quickly, with brokers helping customers to navigate a more competitive market and find the best deal. The mortgage broking industry multiplied from that point, adding another competitive dynamic that has proven great for Australians consumers.”
Despite this greater competition in home loan and deposit pricing, the market share of the Major Banks5 continued to rise throughout the 1990s and 2000s.
Source: APRA Monthly Authorised Deposit-taking Institution Statistics, December 2025. Data prior to 2019 based on APRA Monthly Banking Statistics back-series. Loans to households (both owner-occupied and investment).
Note: Historical market shares are presented on a pro-forma basis to reflect acquisitions during the time series: ANZ includes Suncorp (incl. Norfina), CBA includes Bankwest, and NAB includes Citi.
By 2010, Australia’s Major Banks (and their sub-brands) had grown to represent 91 per cent of the market for home lending.6 They had also consolidated their share of Australian deposits, representing 84 per cent of the market.6 The rest of the market combined represented only 9 per cent of home loans and 13 per cent of deposits, while Macquarie held 0.2 per cent of the home loan market and 3 per cent deposit market share.6
Despite its small foothold in the market, Macquarie believed it could offer greater value to Australians. With a customer-centric culture, significant investment in technology, and through the development of unique products, it set about delivering a genuinely different offering which is now helping to usher in a new era of competition.
“We didn’t have a long-established national branch network,” Perham adds. “That meant we had to design all our products so customers could do everything digitally. We have invested in the best technology, and fostered a digital-first, customer-obsessed culture, to deliver the best possible digital experiences and touchpoints in the market.”
In home lending, Macquarie aligned itself with the mortgage broker channel, which now supports Australians with more than two in three home lending applications.7 By establishing a clear and consistent credit policy, and the technology foundations to support the rapid review and approval of home loan applications, mortgage brokers could feel confident recommending a Macquarie home loan to their customers.
95 per cent of Macquarie Bank’s home loans originate through broker partners like Atelier Wealth and Black Pen Lending.
“We’re loudly and proudly pro-broker,” adds Brown. “We’ve grown the reach of our network, so that today we now have a Macquarie accredited broker in more than 1,250 postcodes across Australia. By investing in technology and really focusing on streamlining our processes, some applications submitted by our broker partners are now approved in just minutes, while they could be waiting days for a response from other banks.”
In deposits, Macquarie removed typical barriers to entry for customers – charging no monthly account keeping fees, refunding ATM fees, and not applying fees when they spend their money overseas – and committed to ensuring any Australian with an internet connection and local mobile phone number could become a customer within minutes.
Macquarie also pays a proper rate of interest on money its customers have in their Transaction Account, in contrast to most banks paying nothing. It also ensures customers using its Savings Account earn the highest ongoing variable interest rate without needing to meet the complex bonus conditions which have become commonplace in the industry.
Olivia McArdle, Head of Deposits and Payments at Macquarie Bank, said: “Australians just want straightforward and transparent deposit products that deliver exactly as they expect them to. That sounds simple, but it’s made difficult by annoying fees, accounts that don’t pay interest, and the ‘hoops and catches’ many Australians have to navigate each month to earn a decent return on their savings. We deliberately did away with all of that, and it’s really resonating with Australians.”
Since Macquarie’s focused efforts to deliver greater value to Australian retail banking customers, the competitive landscape has shifted once again.
Australia’s Major Banks now represent around 75 per cent of the market in both home loans and deposits, while Macquarie has grown to around 7 per cent.8 Importantly, Macquarie’s growth over the past 15 years has not come at the expense of smaller participants in the market. There are around 70 smaller home lenders in Australia which, collectively, have grown to hold around 17 per cent of the home loan market. Around 110 smaller deposit-takers have also grown to represent 19% of the deposit market over the same period.8
Source: APRA Monthly Authorised Deposit-taking Institution Statistics, December 2025. Data prior to 2019 based on APRA Monthly Banking Statistics back-series. Total resident deposits.
Note: Historical market shares are presented on a pro-forma basis to reflect acquisitions during the time series: ANZ includes Suncorp (incl. Norfina), CBA includes Bankwest, and NAB includes Citi.
“We’re squarely focused on being a customer-obsessed game-changer,” says Perham. “By doubling down on delivering further value to all Australians – regardless of where they are and how much they earn – we’re continuing to shake up the retail banking market to the benefit of Australians across the country.”
| 1980 | Operating then as Hill Samuel Australia, Macquarie launches Australia’s first Cash Management Trust to help consumers access higher deposit rates. |
|---|---|
| 1981 | Following the Campbell Committee Inquiry, the Australian Government pursues expansive deregulation of the country’s banking system. |
| 1985 | Hill Samuel Australia secures an Australian banking licence and begins operating as Macquarie Bank. |
| 1993 | Macquarie pioneers the first securitisation of non-bank mortgages in Australia, unlocking greater competition and lower home loan rates for consumers. |
| 2010 | Macquarie represents just 0.2 per cent of the home loan market and 3 per cent of deposits in Australia. |
| 2015 | Retail banking customers can open a transaction account or ‘no hoops’ high-interest savings account without incurring monthly account keeping fees as Macquarie launches new digital banking offering. |
| 2017 | Customers benefit as Macquarie begins refunding domestic ATM withdrawal fees. |
| 2020 | Macquarie becomes fifth-largest home lender in Australia. |
| 2022 | Customers can open a Macquarie transaction account in under three minutes. |
| 2025 | Deposit and home loan market share of Macquarie grows to 6-7 per cent. |
Learn more about Macquarie Bank’s products and services at www.macquarie.com.au.
