Virgin Group global chairman Richard Branson launching a new credit card and brand of financial services / Amos Aikman Source: News Limited

The British entrepreneur flew into Sydney and said his aim was to give the big four banks a "run for their money", claiming that by squeezing out the small operators they had reduced competition to the disadvantage of Australian consumers.

With the backing of global banker Citibank, Virgin Money's package includes an online savings account, two new credit cards and the promise of mortgage and everyday banking facilities in the future.

Mr Branson's Virgin Money operations have always struggled in Australia and survived only with the support of its British parent.

The low-rate credit cards were introduced in 2003 but pulled in 2008 with the 800,000 card holders finding their cards were now operated by its partner Westpac, and were encumbered with higher fees and interest rates.

Mr Branson said yesterday that the "success" of the Virgin brand was not compatible with Westpac, but he was confident his new relationship with Citibank - coming after the end of a two-year non compete arrangement with Westpac - was a better fit.

Mr Branson has made a habit in the past decade of putting on big stunts while offering new financial products, then quietly exiting the market.

In 2006, he pitched a new Virgin Home Loan product while dressed in a long red robe and thongs and positioning himself in Martin Place in Sydney between the CBA and ANZ banks while he said he was "taking on the big four banks who have done very well at the expense of the Australian consumer for many years".

While some greeted his latest foray with scepticism, others said the time was perfect for fresh competition.

Canstar Cannex analyst Peter Arnold said the arrangement between Virgin and Citibank was more sustainable than Virgin's previous arrangements.

"They seem to have covered all the important basics this time," Mr Arnold said. "The last couple of years have been tough, but as things improve there is room for more players."

Professor Paul Kerin, from the Melbourne Business School, said that the timing was good. "I'm very pleased to see this happening, particularly with mortgages, when smaller providers were forced to reduce their activities because of the GFC," he said.