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.
|Bank||Share of wallet November 2013||Share of wallet November 2017||% change|
|Bank of Queensland||55.4%||47.8%||-7.6%|
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.