Australian bank warns consumers to take the plunge

By Ben Daley Australian banks are warning that they will not be able to meet demand for their products if consumers remain reluctant to switch to a more fashionable form of payment.

The Australian Banking Association’s chief economist, Simon Hogg, told Fairfax Media that a new trend in the luxury market for leather jackets and other premium products was that people would switch to something cheaper than their usual payment option.

“The demand for premium products is not the same for everybody,” he said.

“For some it is more than just money, it is a lifestyle and for others it is just a way to save money.”

In some cases we have seen some of these people being very vocal about wanting a lower rate, and the reason for that is they are concerned that they are not going to be able meet the demand for what they are selling.

“In the absence of any consumer pushback, consumers are buying what they want and in the process are spending less than they might otherwise, the ABA said.

Mr Hogg said there was a strong preference for premium leather and the availability of cheaper alternatives made that trend a real threat to the banks’ bottom line.”

As a result, in the past 12 months, we have had an increase in the cost of buying premium leather products, which is actually quite a big problem for the bank,” he told the ABC.”

We think this is a consequence of the increasing costs associated with making sure people are spending more on premium goods.

“The ABA is urging Australians to rethink the way they spend their cash, and that people buy what they need rather than what they think is important.”

It is not a good idea to spend all your money on something that you don’t need,” Mr Hogg told the AFA.”

You should not spend all of your money at once, but rather spend what you need.

“He said consumers should not be surprised if a bank did not provide an item that was available in their region.”

If you have a luxury bag, you might be surprised to see that there are cheaper alternatives,” he warned.”

That is the way to do it.

We have seen the price of premium goods drop and that is a real shame.

“The Federal Government’s proposed changes to the way the Reserve Bank manages its cash will also make a difference, Mr Hagg said.

However, he warned that many banks were still trying to keep up with changing consumer habits and changing tastes.”

One thing that is true is that many Australians are doing a little bit of a reverse, to be more consumer focused,” he explained.”

They are buying things they normally would not.

“Topics:consumer-finance,business-economics-and-futures,consumer-protection,consumer,money-and,debts-and_pricing,government-and-$,australiaContact Ben DalesMore stories from Victoria

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