The average Australian consumer of the major banks deals with at least four financial institutions across their full range of financial products and services – which indicates Aussies aren’t that loyal when it comes to banking. However, CBA has the most loyal customers of the four majors when it comes to both the share of customers’ financial products and financial dollars held.
Across the big four banks, CBA holds the largest share of consumers’ banking and finance products, holding over a third (37.8%) of its customers’ products. Westpac is second best holding a 32.8% share, followed by ANZ (29.9%) and NAB (27.8%), according to the research conducted by Roy Morgan Research. Products include accounts, cards, loans, insurance, superannuation and managed funds.
In terms of holding consumers’ dollars, CBA also leads the group, holding around a third (34.3%) of its customers’ wallet. NAB came in second with 33.2%, followed by Westpac (32.3%) and ANZ (28.8%).
“While most institutions have made some small gains in product cross sell since 2010, overall they have not performed well. Reasons for this include lack of incentive for customers to consolidate, competition from specialist providers such as for superannuation and insurance, lack of product awareness, some concern regarding the spread of risk and staff that may not feel confident in a selling role. It is clear from the analysis that there is a considerable competition in the market, which presents both opportunities and challenges for all major players if they are to consolidate their customer’s business”. Norman Morris, industry communications director at Roy Morgan Research said.
The research also revealed that approximately 10% of consumers who hold a banking and finance product were looking to hold a new financial product in the next six months.