Almost half of customers distrust big 4

by Rebecca Pike26 Jun 2018

Almost half of all Australians have less trust in the big banks because of the royal commission into banking, according to a recent poll.

Carried out by Essential Media last month, the poll asked respondents whether that as a result of the royal commission they had more or less trust in a range of banks.

When it came to Commonwealth Bank (CBA), Westpac, NAB and ANZ, 47% of people said they had lost trust. Thirty percent of those people said it was “a lot less” and only 14% of all respondents said they had more trust.

Customer owned banks saw a more stable level of trust, with most respondents having no change in their perception.

However, these banks still received higher percentages of trust gained than the major banks did.

Eighteen percent of respondents said they had more trust in credit unions, 17% said they had more trust in mutual banks, and 15% said they had more trust in building societies.

Customer Owned Banking Association (COBA) CEO Michael Lawrence said the findings showed there is a movement towards credible, strong and viable alternatives to the majors, such as customer owned banking institutions.

He added, “We are not surprised to see trust in credit unions, mutual banks, and building societies on the rise in response to the stories coming out of the Royal Commission.

“Australians want a banking institutions they can trust to put them first. Our model is solely customer focused because 100% of profits are used to benefit customers.

“Through our Own Your Banking campaign we have seen a genuine shift in consumer sentiment and a willingness to switch to a trusted alternative.”

Brisbane couple Paul and Jo Trotter recently switched from a big four bank to Heritage Bank.

Paul said, “What was coming out of the Royal Commission was really the final straw.

“We just got to the point where we said we don’t care what it takes, people have to stand up and break the monopoly of the big four.

“The process could not have been easier. People are fearful that it will be too hard to switch, but it hasn’t been. We were prepared for it to be a bit messy, but it could not have been simpler.”

 

Related stories:
Home loan figures "positive" for customer owned banks
Customers want trust, but do they also want brands?