Australian Banks: Challengers turn up the heat in the deposit market

Research evidence excerpt

Australian Banks: Challengers turn up the heat in the deposit market

J P M O R G A N Asia Pacific Equity Research

28 July 2026

Australian Banks

Challengers turn up the heat in the deposit market

An already crowded Australian retail deposit market appears to be getting more Australia

crowded, following MQG’s recent announcement of its new Digital Term Deposit

offering and Revolut (not listed) securing its Australian Deposit-Taking Institution

licence from APRA. These developments are likely to compound the recent trend Andrew Triggs AC

of retail deposit market share loss for legacy players, which has seen the Big 4 shed (61-2) 9003-8919

andrew.triggs@jpmorgan.com

860bps of share to MQG and non-majors over the last 10 years. Major bank

Kelsey Bentley

business deposit market shares have proven more resilient, and are probably less (61-2) 9003 7482

threatened by new entrants. A sustained increase in deposit competition would put kelsey.bentley@jpmorgan.com

not-insignificant pressure on major bank NIMs and growth, particularly CBA and J.P. Morgan Securities Australia Limited

WBC (both UW rated) which are the largest players in the retail deposit market.

We note that recent deposit growth trends have slowed and medium/long tenor TD

spreads have deteriorated vs swaps. ANZ (OW) looks least impacted by rising

Australian deposit competition, but it needs to do more to grow its low-cost deposit

base to improve returns (which is likely to be a slow burn).

• Macquarie’s new Digital TD a potential disruptor.MQG launched its new

Digital Term Deposit on 8 July. In addition to a move away from manual TD

applications, key features include: 1) customers who need to call their TD

during the 31 day notice period are not penalised with a break fee (although