Dear Reader,

When career bankers start turning traitor, you know the Big Four are in trouble.

Joseph Healy is soon to release a damning book on the stranglehold our banks have over their customers and the Aussie economy.

The AFR reports:

‘Healy says the banks are quasi-national because ‘‘they have a call option on taxpayers to bail them out should they strike trouble and they are protected from takeovers by the four pillars policy’’.

‘Healy’s most radical idea is contained in chapter nine of his book. He says the Australian government should force the major banks to unwind the consolidation that was allowed to occur over the past 20 years.

‘He says Westpac Banking Corp should be forced to divest the loan assets acquired through its takeovers of Bank of Melbourne and St George Bank, while Commonwealth Bank of Australia should be forced to divest Bankwest.

‘‘‘This won’t be easy,’’ he says. ‘‘But the UK did something similar following the global financial crisis when it forced RBS to sell portfolios of SME loans to a range of other banks. It was a way of getting competition back in the system.’’

‘‘‘The only way there’s ever going to be any radical change here is if there is a significant shift in public policy towards a more pro-competitive system.

‘‘‘The three regulators – APRA, ASIC and the ACCC – do not have a mandate to promote competition in banking, and that’s what is needed.’

The unwinding of our banks will not be news to you if you’ve read my latest research.

In my opinion, it’s inevitable.

And smart investors should be getting into the right banking industry disrupters right now.

One such stock I’m recommending is a banking ‘social media’ pioneer.

There’s a good chance you’ve heard of Afterpay.

It’s a ‘buy now, pay later’ digital service that’s now valued at $6 billion.

It will go down in history as the ‘granddaddy’ of Australian banking disruption.

Afterpay has spent the last two years being a wrecking ball in the financial services industry.

And if you’d owned shares from the beginning, you’d be sitting pretty right now…

Afterpay shares IPO’d in May 2016 at $1.30.

Today they trade over $30.

Afterpay is the poster child of the new breed of company I’ve been talking about in this report.

Believe it or not, its co-founder Nick Molnar is still in his 20s!

He’s now worth $341 million, and just bought a $10 million penthouse on the Ben Buckler clifftop in Sydney.

Unlike Afterpay, the stock I’m recommending is yet to see a stratospheric share price rise. In fact, the stock has been largely flat since the start of 2018. But I believe that’s about to change…

Like Afterpay, it’s a technology-driven payments company.

But with an intriguing and ambitious twist…

No one is talking about this stock in the way I see it.

But when you see the big picture, like we do, you suddenly understand that this company is not what it first appears to be.

This Australian listed company is already big in the US and is the leader in a $123 billion per annum market you’ve probably never heard of.

Think of it like a modern-day Credit Union.

Not only does it have a huge opportunity in the niche market it is already winning in…

I think it could become the poster child for the new era of banking we’ve been talking about today.

A future where banking looks more like social media than, well, banking!

To learn more, click here.

Regards,

Ryan Dinse, Editor, Exponential Stock Investor