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Bank customers reluctant to consolidate or switch

Mark Bristow avatar
Mark Bristow
- 2 min read
Bank customers reluctant to consolidate or switch

While Australian bank customers are mostly remaining loyal to Australia’s big banks, they also lack sufficient motivation to consolidate their wealth with one lender or switch to a new lender, according to a new survey.

The Roy Morgan Single Source survey of over 50,000 Australians, found that in the year to November 2017, none of Australia’s largest banks increased their ‘Share of Wallet’ (percentage of overall customer wealth, including loans, accounts and credit cards, the bank handles) to above 60%.

Compared to four years ago, in November 2013, five of Australia’s ten leading banks saw their share of wallet increase, while the remaining five saw decreases.

BankShare of wallet November 2013Share of wallet November 2017% change
CBA58.4%58.6%0.2%
Bankwest53.5%56.2%2.7%
NAB55.2%54.2%-1%
ANZ52.6%54%1.4%
Suncorp56.5%53.9%-2.6%
Westpac49.9%52.9%3%
St George52.2%51.7%-0.5%
Bendigo Bank47.1%48.2%1.1%
Bank of Queensland55.4%47.8%-7.6%
ING38.4%37.3%-1.1%

Source: Roy Morgan

Roy Morgan industry communications director, Norman Morris, said that while ‘share of wallet’ is an important metric of determining bank customer loyalty, it’s not an easy metric to grow:

“Attempts to cross sell banking products to existing customers in order to increase ‘share of wallet’ have had little impact, most likely due to a number of reasons, including insufficient benefit to consumers to consolidate banking with one bank, increased competition from new and existing providers, diversification of risk and general apathy and effort regarding changing providers.”

Mr Morris added that competition in the financial services market is currently very strong, with the average consumer currently dealing with around four financial services providers to cover their full range of needs.

Disclaimer

This article is over two years old, last updated on January 17, 2018. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent bank accounts articles.

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