Leslie Massey
Australia's banking industry is dominated by four major institutions, collectively referred to as the Big Four Banks. These banks have historically led the market in terms of market share, revenue, and total assets. As of 2024, the Commonwealth Bank of Australia (CBA), Westpac Banking Corporation (WBC), National Australia Bank (NAB), and Australia and New Zealand Banking Group (ANZ) are considered the country's most prominent financial institutions. This guide will explore the unique features and services offered by each of these banks, helping you navigate the complex Australian banking landscape to find the institution that best suits your needs.
| Characteristics | Values |
|---|---|
| Number of Major Banks | 4 |
| Colloquial Name | "Big Four Banks" |
| Total Value of Australian Banking Industry | $5.5 trillion |
| Largest Bank by Assets | CBA (Commonwealth Bank of Australia) |
| Second Largest Bank by Assets | WBC (Westpac Banking Corporation) |
| Third Largest Bank by Assets | NAB (National Australia Bank) |
| Fourth Largest Bank by Assets | ANZ (Australia and New Zealand Banking Group) |
| Oldest Bank | Westpac |
| Emphasis on Sustainability and Corporate Responsibility | Westpac |
| Emphasis on Customer Service and Community Initiatives | ANZ and Westpac |
| Strong International Presence | ANZ |
| Strong Asia-Pacific Presence | ANZ and Commonwealth Bank |
| Strong Focus on Innovation | Commonwealth Bank |
| Strong Investment Banking and Wealth Management Services | Macquarie |
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What You'll Learn
Commonwealth Bank
The Commonwealth Bank of Australia (CBA), also known as Commonwealth Bank or CommBank, is an Australian multinational bank with businesses across New Zealand, Asia, the United States, and the United Kingdom. It is one of the Big Four banks in Australia, alongside Westpac, the National Australia Bank, and the Australian and New Zealand Banking Group. The Commonwealth Bank offers a wide range of financial services, including retail, business, and institutional banking, funds management, superannuation, insurance, investment, and broking services.
The Commonwealth Bank was founded in 1911 by the Australian government and was fully privatised in 1996. It is the largest Australian-listed company on the Australian Securities Exchange as of July 2024, with brands including Bankwest, Colonial First State Investments, ASB Bank, Commonwealth Securities, and Commonwealth Insurance. The bank's former global headquarters were located in Sydney, with the headquarters consolidated into the Commonwealth Bank Place in 2022.
In terms of market capitalisation, or market cap, the Commonwealth Bank held a dominant position in Australia as of June 2024. Despite a 4% decline in Tier 1 capital, it ranked first among the top five banks in Australia. The bank also has a significant history, being the first bank in Australia to receive a federal government guarantee and operating as the country's central bank until 1958.
The Commonwealth Bank offers a range of banking products and services to its customers, including personal banking, business solutions, institutional banking, and company information. It has a strong presence in Australia and the Asia-Pacific region, providing easy access to money through ATMs and local branches. The bank also provides digital banking services, such as PayID and digital wallet functions.
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Australia's 'Big Four' banks
Australia's Big Four banks refer to the country's four largest banks, which have historically dominated the banking industry in terms of market share, revenue, and total assets. These banks are the Commonwealth Bank of Australia (CBA), Westpac, National Australia Bank (NAB), and Australia and New Zealand Banking Group (ANZ). Together, they hold around 70% of the total market share in the country's financial sector, with combined assets exceeding $3.80 trillion as of early 2025.
The Big Four banks in Australia are often referred to collectively as the "big banks" or the "big Aussie banks". They have a strong presence in the country, with a large network of physical branches and ATMs, making them easily accessible to customers. They also offer a wide range of financial products, including transaction and savings accounts, home loans, personal loans, business banking, insurance, and superannuation.
The Big Four banks have a lengthy history, starting as local banks and gradually increasing their market share over time by acquiring smaller rivals, particularly during periods of financial turmoil. The deregulation of the banking sector several decades ago also played a role in increasing their share of the financial system.
The Australian government has maintained a policy called the "four pillars policy", which aims to preserve a level of competition by rejecting mergers between the Big Four banks. Despite this, the Big Four have faced allegations of anti-competitive behaviour and misconduct, particularly by their financial planning and wealth units, leading to various investigations and inquiries.
The Big Four banks in Australia are not only dominant within the country but also have a significant presence in New Zealand, where they operate through subsidiaries. They are also counted among the world's largest banks by market capitalisation and are ranked in the top 25 globally for the safest banks.
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Best banks for accounts with no monthly fees
The Commonwealth Bank of Australia (CBA), Westpac Banking Corporation (WBC), National Australia Bank (NAB), and Australian & New Zealand Banking Group (ANZ) are among the most popular banks in Australia, often referred to as "the big four". While the big four banks dominate the market in terms of capitalisation, there are several other notable banks in Australia, including AMP, Bank of Queensland (BOQ), and ING.
When it comes to bank accounts with no monthly fees, here are some options available in Australia:
ING
ING is a branchless bank in Australia that offers the Orange Everyday account with no monthly fees.
HSBC
HSBC offers the Everyday Global Account, a fee-free bank account. This account provides benefits such as cashback on eligible transactions, access to competitive real-time exchange rates, and the ability to hold, buy, transfer, and spend multiple currencies.
ANZ
ANZ Plus is a no-monthly-fee account that can be accessed through the ANZ Plus app. However, other ANZ bank accounts can also be accessed through internet banking, ANZ bank branches, or over the phone.
NAB
NAB, one of the four largest financial institutions in Australia, offers the Classic banking account with no monthly account fees.
Thriday
Thriday provides a business bank account and Visa Debit card with no monthly account-keeping fees.
ME Bank
ME Bank is an online bank that offers a fee-free everyday bank account, along with a high-interest savings account.
It is important to note that while these accounts do not charge monthly fees, there may be other fees associated with specific transactions or services. Additionally, some banks may waive monthly fees if you meet certain criteria, such as maintaining a minimum monthly deposit, being a full-time student, or receiving government benefits. It is always a good idea to research and compare different accounts to find the one that best suits your needs.
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Best banks for international transaction fees
The Commonwealth Bank of Australia (CBA), Westpac Banking Corporation (WBC), National Australia Bank (NAB), and Australian & New Zealand Banking Group (ANZ) are considered the "Big Four" banks in Australia. These banks offer a wide range of financial services and have a strong presence in the country.
When it comes to international transaction fees, there are a few options available to Australians. One way to avoid international transaction fees is to use a credit or debit card that doesn't charge these fees. NAB, for example, offers the NAB Rewards Signature Card, which does not charge an international transaction fee on purchases made overseas. Additionally, some banks may waive international fees if certain conditions are met, such as depositing a certain amount of money into the account each month. For example, ING offers to waive international fees if customers deposit A$1000 into their ING Orange Everyday Transaction Account and use the card up to five times for payments or purchases.
Another option for avoiding international transaction fees is to use a dedicated international money transfer service instead of transferring money from a regular bank account in Australia, as banks often charge high fees for this service.
Additionally, when using a debit card from one of the major banks for online shopping or travel, high fees may be incurred, including overseas ATM fees, exchange rate fees, and international transaction fees. These fees can be avoided by using a low-fee travel debit card or credit card specifically for travel and online shopping purposes, without having to switch everyday accounts. For example, Westpac offers free access to its Global ATM Alliance ATMs worldwide, while charging a fee for other banks' ATMs.
It is important to note that international transaction fees are typically charged when a currency conversion is required, and they are usually around 2-4% of the transaction value. These fees can add up quickly, especially for those who make regular international purchases. Therefore, it is beneficial to look for cards that do not charge these fees or accounts that waive them under certain conditions.
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Oldest banks in Australia
Australia's oldest bank is Westpac, established in 1817 as the Bank of New South Wales. The bank was founded by merchants and business people in colonial Sydney, with the support of Governor Macquarie and Judge-Advocate John Wylde. The bank's purpose was to provide banking services and issue currency to support the emerging economy. Westpac is still one of the largest banks in Australia today.
Another one of Australia's oldest banks is the Bank of Adelaide, founded in 1865 by wealthy merchants and landowners. The bank played a significant role in South Australia's economic development, channelling British capital into local industries and infrastructure projects. It operated independently and profitably for over a century.
The Mutual Trust Bank, founded in 1876 in Adelaide, is also among the oldest banks in Australia. It operated as a building society, offering mortgages, loans, and deposit services to South Australian communities. In the 1970s, it transitioned into a regional bank and later merged with the Westpac group in the 1980s.
The Colonial Bank of Australasia (CBA), formed in 1874, is another venerable institution. With a royal charter, it expanded across the Australian colonies and became one of the Big Four Banks.
Rural Bank, established in 1888, is also among Australia's oldest banks, specialising in lending and tailored banking services for the agricultural sector.
AMP is also mentioned as one of the oldest and most recognisable banking brands in Australia, although its founding date is unclear.
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Frequently asked questions
The Commonwealth Bank of Australia (CBA) is the country's largest bank by assets and is considered the most popular bank in the country.
The "Big Four" is a colloquial name for the four largest banks that have historically dominated Australia's banking industry in terms of market share, revenue, and total assets. The "Big Four" banks of Australia are the Commonwealth Bank of Australia (CBA), Westpac Banking Corporation (WBC), National Australia Bank (NAB), and Australia and New Zealand Banking Group (ANZ).
The CBA is Australia's largest bank by assets and a leader in retail, business, and institutional banking. It has a strong focus on innovation, particularly in digital banking and financial technology, making it a popular choice for millions of Australians.
The Westpac Banking Corporation (WBC) is one of the "Big Four" banks in Australia and is the second most popular bank in the country. It is known for its emphasis on customer service and community initiatives, as well as its strategic investment in technology.
Other notable banks in Australia include Macquarie, ING, HSBC, and AMP. These banks offer a range of services, including investment banking and wealth management, high-interest savings accounts, and international transaction fee minimization.
