The number of people likely to switch banks has jumped dramatically, as consumers dealing with household financial pressure took a harder look at the value of their banking and other financial arrangements.
RFI Global reported that 15 per cent of Australians with bank accounts said they were “extremely likely” to switch their primary transaction account in the next 12 months. It is the highest switching propensity recorded since RFI started doing the survey in 2011.
Twenty-three per cent of 18 to 24 year-olds said they were extremely likely to switch.
RFI chief data officer Alan Shields said: “When consumers are in a mindset where they feel they are in the trenches, they are also evaluating what they get back from their banking providers and whether they are valued.
“The answer from many is they don’t feel like they are valued.”
The top reasons cited by people with a high switching propensity were: I am a long-term customer and I have not been rewarded; I want to access a better rate on my linked savings account; and I have been offered an incentive by another institution.
“Retention will be the battleground that banks need to focus on. Success will lie in providing customers with greater support to manage their finances and a more tangibly rewarding experience as a customer,” Shields said.