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Retail Banking in Australia - COVID-19 Impact Snapshot

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  • 18 Pages
  • July 2020
  • Region: Australia
  • GlobalData
  • ID: 5019298

The Coronavirus (SARS-CoV-2) outbreak, dubbed COVID-19, is first and foremost a human tragedy, affecting millions of people globally. The contagious Coronavirus, which broke out at the close of 2019, has led to a medical emergency across the world, with the World Health Organization officially declaring the novel Coronavirus a pandemic on March 11, 2020.

Fears surrounding the impact of COVID-19 have already significantly impacted the global economy, with most countries across the world registering declines in their economic growth for the year to date. Many economists and institutions have cut their forecasts, and many experts are predicting the potential onset of recessionary environments.

A similar trend was seen in Australia, with economic growth declining in the first quarter of 2020. However, Australia is among the few countries globally that have been successful in combating the COVID-19 outbreak. With the government now easing lockdown restrictions, a rise in consumer and commercial spending is expected, which in turn will support the banking industry.

This report focuses on the impact of the Coronavirus outbreak on the economy and the retail banking industry in Australia. Based on our proprietary datasets, the snap shot provides a detailed comparison between pre-COVID-19 forecasts and revised forecasts of total mortgage, consumer, credit card loan balances as well as deposit balances in terms of value and growth rates. It also offers information on measures taken by the government to combat Coronavirus.


  • Australian banks are facing pressure on their profits in the short term: loan growths are stalling, impaired loans will begin to rise, and the retail banking sector will see further consolidation.
  • The government’s efforts to provide temporary income to the millions thrown out of employment will work in the short term and hold down the impaired loan ratio for the first half of 2020, but pressure will be on lenders for many months following. However, we will also see an increase in the use of automatic digital decisioning on loans from Australian banks.
  • Given the expected scale and length of the disruption to the Australian economy, it’s no surprise that key banking indicators are suffering. However, government stimulus measures for the banking sector and broader economy will limit the fallout.

Reasons to Buy

  • Make strategic decisions using top-level revised forecast data on the Australian retail lending and deposits industry.
  • Understand the key market trends, challenges, and opportunities in the Australian retail lending and deposits industry.
  • Receive a comprehensive insight into the total consumer loans in Australia, including mortgages, personal and credit card loans as well as retail deposits balances.

Table of Contents

COVID-19 Update
  • Impact Assessment
  • Retail Deposits
  • Total Consumer Loans
  • Mortgage Loans
  • Credit Card Loans
  • Other Consumer Loans
  • COVID-19 Impact: Job Analysis

  • Supplementary Data
  • Definitions
  • Methodology
  • About the Publisher
  • Contact