Consumers aren’t switching, says second-tier

by Caroline Dann18 Sep 2012

Despite increased ‘bank rage’ at the Big Four, only a small percentage of borrowers are switching to alternative banks. 

Heritage Bank cited statistics from a Colmar Brunton study in South East Queensland, which found only 5% were looking to switch over the next 12 months.
This was compared to 53% who knew legislation had changed to make switching easier.
“People are angry at the big banks, and many now know it’s now easier to switch, so we just need to keep making the aware of the alternatives,” said Heritage Bank CEO John Minz.
“Introducing the new switching legislation has been a positive step but the Federal Government needs to back that up with additional promotional activities highlighting the fact that there are alternatives to the big four banks.
“Heritage and the other customer-owned banking alternatives are doing our bit to promote competition, and there needs to be concerted action across the board to create that ‘fifth pillar’ in the banking sector that has been talked about so often,” he said.
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