While the National Australia Bank (NAB) has said it cannot rule out the possibility of raising its variable mortgage rate before the RBA meets again in February, the major has decided to use its current low rate to gain market share.
NAB yesterday launched a mobile bank branch – NAB on Wheels – that can be positioned in front of competitors’ branches.
Yesterday, NAB on Wheels positioned itself in front of the Westpac branch in Martin Place, Sydney, where NAB employees handed out flyers with the slogan ‘ready for a change’.
NAB’s chief executive Warren Shaw told The Australian that the marketing stunt was not aimed solely at Westpac customers, who have copped the highest interest rate rise since the RBA lifted the official cash rate.
Mr Shaw said the ploy aimed to rebuild NAB’s mortgage book, which had lost ground over the last six months.
“We have the capacity to deal with as many customers as want to do business with us,” Mr Shaw said.
“This is not about home loans, it’s credit cards... all financial services,” he said.
Currently, NAB’s variable home loan interest rate sits at the bottom of the four majors at 6.49 per cent, below CBA (6.61 per cent), ANZ (6.69 per cent) and Westpac (6.76 per cent).