Aussie consumers unafraid to switch banks

10 October 2019
| By Laura Dew |
image
image
expand image

Competition between banks for customers remains ‘fierce’, according to the Australian Banking Association (ABA), as more than two million Australians switched provider last year.

According to data from Deloitte Access Economics, which had been commissioned by the Australian Banking Association, 15% of account holders switched bank for everyday transactions.

This compared to a switching rate of just 3% for everyday transaction account holders in the UK and 11% in the US.

This was followed by 10% who switched credit card provider and 5% who switched their mortgage provider.

While 79% said they were satisfied with their everyday transaction provider, the data indicated those who were unsatisfied were highly likely to look elsewhere.

Price-related factors were important to consumers, particularly among mortgage holders where 87% said price was ‘important’ or ‘very important’. Other important factors were customer service and fraud protection.

The ABA said the data showed competition was fiercer than it had ever been and that it paid for customers to shop around if they were unhappy with the current bank. This could be via online comparison sites or other bank’s marketing materials.

“The message to all Australians is if you aren’t satisfied with your home loan, credit card or other product it pays to shop around to get the best deal possible,” said Anna Bligh, chief executive of the ABA.

In recent years, the Big Four banks have chosen to exit the wealth management market with Westpac being the final firm to depart the market when it announced earlier this year that it was exiting personal advice by financial planners.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago