This week the supermarket giant Coles announced they are in the process of seeking approval for a banking licence.
If accepted, it would mean that the retail chain could accept deposits and offer loans. There is no doubt that Woolworths would be soon to follow if Coles is successful.
We are keen to hear your say. With the retail giants already holding incredibly strong positions across retail, food, liquor, gaming and petrol do you think that they should be allowed to get into banking too?
We would benefit from the introduction of a banks operated by the retail giants. It would ultimately mean more competition in the banking industry, particularly across the big 4 banks who already hold a strong position. The retail giants would not enjoy the same enviable position that they hold in supermarket retail and will need to offer some great products in order to compete. This will ultimately benefit us, the customers.
The retail giants already have a strong foothold across retail and if brought into banking their power would be too great. We are already seeing the large retail chains have an strong influence on supermarket and petrol prices. With a move into banking what is to stop them using their leverage to offer products that are unethical or that have disastrous financial consequences.
What is your say? Should the retailers be allowed into banking?