Australia's NAB announces plans to buy Citi's local consumer business

The move follows the American bank’s announcement to exit the region while buy-now, pay-later rivals challenge the old credit card business model. The deal consolidates more than 90% of the country’s credit cards industry into the hands of Australia's Big Four banks, with NAB adding a million customers through the deal to become the nation's second-largest credit card provider, according to Reuters.

Credit card payments in Australia have been shrinking as government pandemic cheques have been used to pay down debt and younger generations turn to buy now pay later (BNPL) providers such as Afterpay to pay in ‘interest-free’ instalments.

Citi's institutional business and underlying technology or platforms are not part of the deal, which is expected to close by March 2022, subject to the regulatory approvals.

The Australian Competition and Consumer Commission (ACCC) said it would look ‘extremely closely’ at ‘any further consolidation involving large players in the banking sector’.