Fees drive banking decisions
Most Australian banking customers would be willing to change banks and consider a non-traditional banking entity if they offered lower fees, according to Ernst and Young's Banking Customer Survey for 2012.
Cost considerations could placate Australian consumers more than their foreign counterparts, with 35 per cent saying changes to fees would increase satisfaction, compared with 22 per cent globally.
It also found more than half of Australian banking customers used two or more banks in an effort to "ensure the best rates or fees for each product".
"The banking environment is changing and Australian banks are facing increased competition from non-traditional entrants to the market, such as technology companies and telcos," said Ernst and Young's Oceania Banking and Capital Markets leader Paul Siviour.
Ernst and Young found 60 per cent of Australian customers would change banks if they could offer lower fees, while 57 per cent wanted better rates. Tailored products were a drawcard for others, with 46 per cent willing to switch on this basis.
Only 39 per cent of Australian customers think their bank adapts products and services to suit their changing needs over time, compared to 44 per cent globally.
The survey found customers would also proffer more information on their own terms if they felt it benefitted them.
With such dissatisfaction, it was no surprise the survey found 63 per cent of Australian consumers source information through word-of-mouth.
"In an increasingly connected environment, word of mouth is gaining greater influence than ever before and customers are listening to each other more than their banks or financial providers," Siviour said.
He said the online community and comparison websites were gaining traction as sources of information, and banks needed to shift their mindset and begin responding to customers.
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