Commonwealth Bank’s head of business banking Mike Vacy-Lyle says discretionary retail showing signs of softness as interest rates start to bite.
“There is a demand for affordable housing, we know that, everybody knows that, so we absolutely have to supply into the market,” Mr Vacy-Lyle said.
Mr Vacy-Lyle said having one in four businesses in Australia as transaction customers allowed CBA good visibility over where difficulties were most likely to arise. “We track the CBA card data, which shows where consumers are spending and areas like clothing, retail, footwear, those are early indicators of stress in the discretionary retail space and we have seen those come off,” he said.
“When it comes to lending because we have the transactional insights we can have a better, more meaningful conversation around their credit needs and better risk select,” he said.
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