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Millions of Australians switching financial products

10 October 2019

Competition between banks remains strong, with millions of Australians switching banks for home loans, credit cards and transaction accounts last year, according to a newly-released report by Deloitte Access Economics commissioned by the Australian Banking Association. 

While a strong majority of customers are satisfied with their financial products, the Deloitte report showed 2.8 million customers switched to new banks or financial providers for their home loans, credit cards and transaction accounts. 

Australian Banking Association Chief Executive Officer Anna Bligh said the Deloitte report showed competition between banks was strong. 

“Whether you’re looking for a new home loan, a credit card or a transaction account, competition for a customer’s business is fiercer than it has ever been,” Ms Bligh said.   

“According to this report from Deloitte Access Economic 2.8 million customers switched banks for their home loan, credit card or transaction account last year.  

“The numbers speak for themselves when we say competition is robust, with 15% of everyday transaction account holders, 10% of credit card holders and 5% of mortgage holders switching banks in the 12 month period. 

“On the flip side, most customers are satisfied with their bank product, with 79% of everyday transaction, 75% of credit card and 67% of mortgage owners saying they are ‘very satisfied’ or ‘satisfied’ with their providers. 

“The message to all Australians is if you aren’t satisfied with your home loan, credit card or other product it pays to shop around to get the best deal possible,” she said.    

For a copy of the report click here.

KEY FIGURES 

Account  Everyday Transaction  Credit Card Mortgage 
Satisfied 79% 75% 67% 
Actively Searching 22% 21% 23% 
Switched 15% 10% 5% 

Source: Deloitte ‘Choice in Banking’ report 2019. % = per centage of adult account holders based on population 18 and over, June 2018 minus those without a transaction account, which is just over 2% of the adult population. 
Note: columns do not add to 100% because survey questions about satisfaction levels, searching and switching were separate questions. 

ENDS 

Contact: Rory Grant 0475 741 007 

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