ME Bank’s recent report revealed an astonishing 94% of Aussies don’t trust their banks in the wake of the Banking Royal Commission’s release of its final report earlier this year.
After surveying 1000 Aussies in February this year, ME’s report also unveiled that 95% of Aussies agreed bank products and rates aren’t as transparent as they should be, and 92% believe that banks sell products and services that are inappropriate to customers, or that they don’t need.
ME CEO, Jamie McPhee, coined the term ‘bank-xiety’ as a way to describe these disturbing findings of the anxiety Aussies are experiencing around their finances following the Banking Royal Commission.
“And this is concerning given banks, and banking, are at the heart of our national and household economies. Banks facilitate our daily financial transactions, hold much of Australian’s hard-earned savings, and are often the main source of credit in times of need,” he said.
Despite the massive number of people experiencing bank-xiety, ME’s survey showed that very few are proactively doing something about it, with only 14% of Aussies admitting they have switched, or are in the process of switching to a bank they trust.
While ME strongly urges unhappy consumers to actively review their banking relationships, according to McPhee, very few do, as “there’s still this perception that it is difficult to switch right away and that all banks are the same.”
It is because of this that ME Bank, among other banks, is now working harder than ever to earn consumer trust and prove that not all banks are the same.
“We'd like to think that we're one of those banks that bring a very different mindset to the way that banking is conducted,” said McPhee. “We have a core purpose, which is not a marketing campaign. It's to help all Australians get ahead. That's the very reason the bank was set up in the first place by the industry super funds in 1994.”
ME Bank, which won Mozo’s 2018 Australia’s Best Bank award for offering great value products across home loans, credit cards, savings accounts and more, has launched a campaign which strives to raise awareness of the bank-xiety epidemic by encouraging Aussies to speak up and take action.
“Like many issues, bank-xiety sits just below the surface. By providing Australians with the language to describe what 94% of the adult population is experiencing, we want to empower them to rid themselves of this feeling for good,” said McPhee.
“That's exactly why we need sites like Mozo, which actually help people navigate an area which so many find quite complex,” McPhee added.
Refinance home loan comparison - last updated January 16, 2021
So, ask yourself this; are you truly satisfied with your current banking situation? Or, are you like the 94% of Aussies suffering from post-Financial Services Royal Commission bank-xiety?
How to recognise the symptoms of bank-xiety:
Symptom: You signed up to your home loan five years ago, and you know the rate’s gone up since then, but you’re too scared to check by how much.
Solution: Bite the bullet and check your loan files! Then punch some numbers into our switch and save calculator and find out just how much you could save if you were to refinance.
Symptom: You’re struggling to keep up with loan repayments, but you don’t think your bank will help.
Solution: Get familiar with your banks’ financial hardship policies - all lenders have them. Your bank wants you to meet repayments as much as you do, so don't be scared to reach out, or, if they genuinely aren't helpful, seek advice from the financial ombudsman.
Symptom: You’ve lost faith in your bank after reading the Banking Royal Commission News.
Solution: Is it because you’re with a greedy big bank? Check out these ethical banking options or make the switch to a customer-owned or mutual bank with a community focus. There are plenty of good banks out there - you just have to find them!
If you’re having doubts, then now’s the time to make the switch and refinance your home loan to a bank that is better suited to your banking needs.
^See information about the Mozo Experts Choice Home Loans Awards
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.