Thinking of changing banks? 52% of young millennials have in the past year

When it comes to banks many of us tend to stick with the one we know. At least that was the case until recently - the ongoing global pandemic has forced change upon us. As well as learning new skills and starting new jobs, Aussies have been switching banks too.

In fact, around 30% of people surveyed in the recent PACE Pulse report by FIS said they had started a new banking relationship in the past 12 months. That figure is even higher for younger millennials, with 52% of 25 to 29-year-olds saying they had rethought their previous bank loyalty.

Of the 30%, around 5% previously did not have a bank account. The rest switched financial providers for a number of reasons. 

Why people are switching banks

The survey lists six main motivations for switching banks, with the biggest motivation to gain better benefits. After that people listed starting a new chapter in their life and accessing particular products and services as their biggest reasons.

Features such as digital banking and products including credit cards and mortgages were noted as standout reasons for people to switch banks. With more and more digital banks and services becoming available in Australia, it’s easy to see why. 

In recent years neobanks including 86 400, Up Bank, Alex Bank and Volt Bank have launched in Australia. If you’ve been following the recent shake up in banking, you might even be thinking about switching too. 

Below are a few features to consider when changing banks.

What to look for in a bank account

What you want from a bank account will depend on your individual circumstances. As illustrated by the report, some people switch for a better customer service experience, while others are on the hunt for particular products.

Here are some of Mozo’s top tips for what to look for when switching.

• Fees: Want to avoid high fees? You may want to vet banks and credit unions for potential charges, such as account keeping fees, ATM fees and even overseas exchange fees.
• Conditions: Some products may come with strict conditions to meet to be eligible for certain perks. For instance, there may be monthly conditions to meet to earn interest on some savings accounts. Make sure you can meet these requirements before signing up.
• Products: As mentioned above, many have switched banks to take advantage of a particular product. An enticing product such as a savings account, a home loan etc. could sway your decision one way or the other.
• Digital banking features: Nowadays a lot of banks offer apps with useful features. These can include reminders to help you save money, a round-up tool and spending insights.
• Accessibility: The access you have to the bank may also be important to you. Are you happy to have online access only? Or would you like to have the option to walk into a branch? These are some other things to consider when switching.

Once you have an idea of what you’re looking for, you can start comparing what’s out there. Head to Mozo’s compare bank accounts page to get started, or check out the options below.