Home loan customers feel 'trapped' by banks

Customers of the big four Aussie banks currently feel "trapped" and unable to switch to a new institution, an industry expert has said.

A poll conducted by Essential Research has found that a significant proportion of consumers believe they face too many obstacles when it comes to changing banks.

Speaking to the Herald Sun about the finding, Mark Degotardi, acting chief executive officer of Abacus-Australian Mutuals, argued that it should be easier for customers to compare home loans and switch to new providers.

"They [customers] are not happy with the service they are getting from the major banks," he said.

"The government has made it clear it will promote competition by supporting credit unions, building societies and smaller banks."

Indeed, the Essential survey results support current government aims to facilitate greater competition in retail banking, with 37 per cent of "big four customers" stating that they had considered leaving their bank following recent home loan interest rate and fee rises.

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