New research has suggested nearly 50% of bank customers could dump their current bank when the government's "tick and flick" reforms start in July.
Roy Morgan Research has found that around 20% of Australians already plan to switch financial institutions in the next year. Were the paperwork and administrative effort of switching substantially reduced, nearly 50% of customers said they would switch.
The main reasons consumers listed for their desire to change were uncompetitive interest rates (35%) and high or unfair fees (30%). Mutuals peak body Abacus claimed the data foreshadows a shift to credit unions and building societies once the government reforms take effect on 1 July.
"Clearly the research has found that the administrative hassle of switching accounts is an impediment to our strong desire for new customers, but this won’t be the case for much longer," Abacus chief executive Louise Petschler said.
Swan brings in bank 'tick and flick'