The financial sector in Australia has become highly consolidated, said Sir Richard Branson this week, eliminating choice and producing higher costs for the average Aussie.
That’s why he unveiled Virgin Money, a range of new products starting with two credit cards and an online savings account — all of which are best in class — with the intention of putting more money back in Australians’ pockets.
“Australia steered itself superbly through the global financial crisis, but unfortunately this came at a price: the elimination of genuine choice.”
How does Branson plan to shake up financial services in Australia?
Virgin Money is out to make a fair profit – not the most they can get away with.
Virgin Money isn’t just opening up credit card competition. He plans to undercut home loans as well, reports the Sydney Morning-Herald.
The Herald also reports that the experts are on his side, such as the competition law expert Frank Zumbo from the University of NSW.
”Virgin Money’s launch of new credit cards and an online savings account is good news for consumers who have been victims of gouging by the four major banks,” Associate Professor Zumbo said. ”Australia has one of the most concentrated banking sectors in the world and that’s costing Aussie families dearly.”
Branson also believes the world is “getting back on its feet” with a global economy that will steer clear of a double dip recession, he told CNBC network on Tuesday.