Branson's back for another crack at finance market

The years since haven't necessarily been kind in regard to Virgin's Australian ambitions: Westpac turned its back on the Virgin credit card business. Macquarie walked away from its home lending business. And Virgin Money's Australian operations posted a string of losses.

But yesterday, the one-man brand that is Sir Richard was back, performing a familiar routine. Some things haven't changed: the age of the blondes on his arm, for one, ensuring the cameras keep whirring.

But some things have: the banking partner doing the leg-work in the deal, Citi's retail arm Citibank. Once again, Sir Richard is promising to shake up the banks, with a low-cost credit card and a sugar-coated introductory rate on a deposit account in a populist pitch attacking the big four banks.

"We've come to Australia to give the banks a run for their money," Sir Richard enthused. "There used to be nine banks, a lot of competition here. Those nine banks have largely disappeared, and now we've got four big banks, which means there isn't a lot of competition . . . and those banks are making a lot of money."

The experts are on his side, such as the competition law expert Frank Zumbo from the University of NSW.

"Virgin Money's launch of new credit cards and an online savings account is good news for consumers who have been victims of gouging by the four major banks," Associate Professor Zumbo said. "Australia has one of the most concentrated banking sectors in the world and that's costing Aussie families dearly."

But what of the world Sir Richard attempted to shake up seven years ago? After the global financial crisis, the cost of funding is a very different matter for all banks.

Few dispute the low-cost Virgin card shook up the industry at the time. But today they are standard. Virgin's credit card no annual fee promise has long been copied and its interest rate of 16.95 per cent does not stand out much.

His cash deposit account rate of 6.75 per cent drops back to a competitive 5.35 per cent after the special rate wears off.

Consumers will hail Sir Richard if he forces the big four to move. But can he turn a buck? He has been here for seven years and hasn't cracked the market. Now he's starting again. Citi is a major global credit card player but it's a mid-tier player in Australia.

So aren't you entering the market a bit late? Sir Richard was asked.

"I don't think we're coming in late at all. It's a perfect time. Virgin loves coming in where people are being ripped off and there's no question that people are being ripped off in the banking sector, and in every single product that we're launching we're much, much better value."