ISA’s Whiteley attacks banks on super
Industry Super Australia (ISA) has launched another attack on the major banks claiming consumers could see a fall in returns if the dominance of the big four banks in the banking sector was replicated in the superannuation sector.
Leveraging data showing that the big four banks’ market share of assets in the banking sector has jumped from 66 per cent in 1990 to 80 per cent last year, ISA chief executive, David Whiteley claimed the banks were lobbying hard to further penetrate and dominate the superannuation industry.
He said they were seeking to do this under the guise of “choice” and competition”.
Whiteley noted that, currently, Australians’ superannuation assets were roughly split three ways among not-for-profit, retail (including bank-owned), and self-managed super funds (SMSFs).
“Desperate to fuel further growth in profits, the banks are lobbying hard to remove the laws that protect workers who don’t choose their own fund and thus save through the default super system,” he claimed.
“This would remove consumer safeguards and supercharge cross-selling of bank and super products, and the bundling up of employers’ business banking with workers’ default super.”
“Past returns suggest bank domination of the super sector could leave millions of Australians facing the grim choice of working longer or retiring with less,” Whiteley said.
The ISA chief also pointed to a recent Essential poll which found that two-thirds of Australians agreed the banks were already too powerful and suggested giving them more of the super market would make the situation worse.
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