The bank is reshaping competition in the industry by focusing on simpler savings incentives and accelerating its loan growth. However, upcoming policy and compliance changes could pose challenges to that expansion.
Australia’s mortgage market continues to expand steadily. Data from September, published by the national financial regulator, highlights the scale of Macquarie’s growth. Commonwealth Bank, the country's largest lender, saw its mortgage portfolio exceed $600 billion with 0.68% growth for the month. Macquarie outperformed this, with its mortgage book reaching $153.7 billion after growing 2.13% in just one month. This was more than triple the market pace and 22.4% higher than the previous year.
This growth has lifted Macquarie’s share of the mortgage market to 6.47%, with a 10 basis point increase recorded in September alone. Meanwhile, the big four banks - Commonwealth Bank, ANZ, Westpac and NAB - are either holding steady or losing market share. Macquarie has also paused new business and trust loans as it waits for regulatory changes connected to anti-money laundering compliance. These made up less than 5% of its mortgage activity.
At the same time, Macquarie is making significant inroads in the deposit market. The bank continues to attract customers who are dissatisfied with the complicated conditions tied to bonus interest rates at traditional banks. Macquarie’s deposits surpassed $90 billion for the first time, reaching $91.7 billion after growing more than 3% each month for three consecutive months. Over the year, this is a 36.5% rise compared to 9.5% at Commonwealth Bank. Unlike its competitors, Macquarie offers a consistent 4.25% savings rate on balances up to $2 million, without penalties for missing monthly deposit or spending requirements.
This indicates a broader shift, as more customers move their savings to institutions that offer clear and simple terms. While major banks are tightening access to headline rates, Macquarie’s low-friction approach continues to appeal. Still, this growth is drawing attention from regulators and may require the bank to overcome new operational or compliance challenges.
