One size doesn’t fit all for Aussie banking customers

It turns out that Aussies are enjoying an open relationship of sorts with their banking providers, according to new data from Roy Morgan Research.

The research revealed that even the largest banks in Australia are failing to nab more than 60% of our total ‘share of wallet’, which includes a customer’s bank account, deposits, home loan, personal loan and other major card balances.

Roy Morgan’s Industry Communications Director, Norman Morris said that although ‘share of wallet’ was an important indicator of consumer loyalty, it has been a continuing problem for providers down under.

“This is shown by the fact that over the last four years there has been no real change in the overall market on this measure,” he said.

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“[It is] 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.”

Of the major Aussie banks, Commonwealth Bank topped the competition, currently commanding 58.6% of its customer's banking business with Bankwest and NAB trailing slightly.

But the biggest loser to come out of the four year study was BOQ who have lost almost 8% of its average customer’s share of wallet since 2013.

Morris believes the lack of serious growth in this particular metric reflects the increased competition across a range of financial sectors.

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“Evidence for this is that the average consumer deals with around four financial services providers to cover the full range of their needs,” he said.

This is good news according to Mozo Director, Kirsty Lamont who believes in order to get the best possible deal, whether it be on a bank account, term deposit or credit card, Aussies must be prepared to diversify their financial providers.

“This research shows that Aussies are looking into what matters most - the rates and features of banking products - and tossing aside the outdated notion of brand loyalty,” said Lamont.

If you’re looking to kick off the new year with a review of your financial providers, head to Mozo’s bank account comparison tool to compare a range of accounts including their most important rates and features and while you’re at it, check out what the competition is offering on products like home loans and credit cards.