ANZ’s leadership faces mounting pressure as heightened deposit competition bites into its franchise and erodes market share more than at any other major bank. The latest data from the prudential regulator shows the Melbourne-headquartered lender losing ground while the broader fight for customer deposits accelerates. UBS analysis of the official figures puts ANZ’s total deposit share at 14.1% in the year to the end of May, down from 14.5% a year earlier. That decline signals a meaningful shift in a low-growth, highly contested market.
Most of ANZ’s slide stems from its shrinking slice of household deposits, a category where its main competitors hold the line or push ahead. Retail money is especially prized because it usually provides stickier, cheaper funding than wholesale markets. Losing ground here suggests ANZ is either choosing not to match aggressive pricing or is struggling to convert customers despite competing offers.
Rival majors appear to navigate the same environment more effectively, keeping their share stable or nudging it higher. The contrast shows how finely balanced deposit strategies have become at the big end of town.
The gap is set to focus attention on ANZ’s deposit pricing, product mix and customer retention tactics as markets watch how far it will go to defend share. Analysts see the current battle as a key test of strategy for the big four given tighter regulation and slower credit growth.
For ANZ, the pressure around deposits adds another front in its broader effort to lift returns and compete more effectively with stronger-performing peers. How the bank responds to this funding squeeze is likely to shape its competitive position in coming years.
