New research commissioned by the Customer Owned Banking Association (COBA) has revealed that more than half of Australians are choosing their primary bank based on their parents’ preferences — a trend that could see clients missing out on competitive rates, better service, and more values-aligned banking options.
The survey of 1,004 Australians aged 18 and over found 33% had their accounts opened for them by their parents, and another 20% followed suit by choosing the same bank as their parents.
“It’s a common story: your parents opened your first account, and many simply stayed with that bank,” said COBA Chief Operating Officer Stephanie Elliott (pictured). “But as we grow, so do our values and priorities. We encourage Australians to ask themselves if their bank truly reflects who they are and what they care about today.”
For mortgage brokers, the findings highlight an opportunity to educate clients about the potential value of reassessing their banking relationships — especially with 61% of respondents saying they’ve never switched banks.
“By not making a proactive choice on which institution you bank with, you could be overlooking competitive rates and fees, market-leading customer service, or the chance to bank with an institution that truly aligns with your specific needs and values – all qualities customer-owned banks are renowned for,” Elliott said.
Brokers should also be aware that many clients are choosing to stay with their existing lender when refinancing. New analysis from Money.com.au found internal refinances hit a record 35% of all refinances in the year to March, with 194,898 borrowers choosing to stay put.
Among Australians who did switch banks, the top motivators were better fees or rates (53%) and dissatisfaction with customer service (20%). These are key levers brokers can highlight when discussing lender options with clients.
Earlier Roy Morgan research found that customer-owned banks were the most trusted in the banking sector — a standout result at a time when overall industry trust remains low.
The sector also consistently leads on customer satisfaction and community reinvestment, with contributions nearly nine times higher than those from major banks.
Despite their strengths, Australia’s 55 customer-owned banks — including mutual banks, credit unions, and building societies — account for less than 6% of the nation’s banking system, compared to the nine investor-owned banks that hold 84% of assets.
“It’s about finding a financial institution that genuinely fits your life, your values, and your future. It's time to choose a bank that fits who you are today,” Elliott said.
Because customer-owned banks are owned by their customers, not shareholders, they focus on delivering long-term value and service, rather than profits for external investors — a model brokers may find increasingly relevant for clients seeking ethical, service-driven lending partners.
