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Rhondalynn Korolak, Author of Financial Foreplay® and On The Shoulders of Giants

The restaurants and promenades in the Docklands (Melbourne) were packed on Monday, night with couples. It was after all Valentine’s Day – the day when everyone declares their undying love for each other… well, at least their “commercial love”.

Apparently, if NAB has anything to do with it, February 15^th is now the official day of the year to break off a bad relationship – the “unValentines Day”. I wonder how long it will take for chocolatiers, greeting card companies and florists to create some products to commemorate this special occasion?

The obvious question that no one seems to be asking is “why was the NAB dating both the ANZ and CBA in the first place?”

I would have thought that the NAB made its intention (to see other people) clear over 18 months ago when it began axing fees and offering cheaper home loans? Clear to whom is the operative question though? Despite the marketing money spent and the slashed rates, customers don’t seem to be flocking to the NAB to take up these attractive offers. In fact, NAB’s shares and Return on Assets have been lagging behind the other Big Four banks.

NAB’s standard variable mortgage rate is 19 basis points cheaper than Westpac’s and 14 points lower than the Commonwealth’s rates. This equates to a massive decrease in margins for the financial performance of the NAB, which has not been offset by increased top line revenues or market share.

While the NAB Break Up campaign is undeniably generating a whole lot of media exposure and social media chatter, what remains to be seen is whether the average consumer on the street is ready to take their business to the NAB to get the lowest rates. Isn’t that what all of this is really about?

Then again, maybe it was never about price but rather the relationship that customers feel they have (or don’t have) with their bank?

Coincidentally, I am a NAB customer. If anyone out there in “Bankworld” is listening, please show me some love so that we don’t have to break up on February 15^th next year.