Yellow Brick Road challenges Aussie banks
Yellow Brick Road’s CEO Mark Bouris is challenging Australia’s big banks, threatening bank profits and/or term deposit rates via lower margins.
The current challenge was carefully put together step by step. First, Bouris set up a branch distribution system via the Yellow Brick Road public company. The second step is to gain access to wholesale, government guaranteed deposit funds and Bouris is doing that via his deal with Macquarie.
The third step is to foster a climate for anti-bank attitudes among the home borrowers and he does that via his columns in the Fairfax press.
Then finally you launch home loan products that offer lower rates of interest than the banks. That's an amazing combination and it is rare for established players to have such a competitor suddenly emerge.
Source: The Australian