10 October 2019
Competition between banks remains strong, with millions of Australians switching banks for home loans, credit cards and transaction accounts last year, according to a newly-released report by Deloitte Access Economics commissioned by the Australian Banking Association.
While a strong majority of customers are satisfied with their financial products, the Deloitte report showed 2.8 million customers switched to new banks or financial providers for their home loans, credit cards and transaction accounts.
Australian Banking Association Chief Executive Officer Anna Bligh said the Deloitte report showed competition between banks was strong.
“Whether you’re looking for a new home loan, a credit card or a transaction account, competition for a customer’s business is fiercer than it has ever been,” Ms Bligh said.
“According to this report from Deloitte Access Economic 2.8 million customers switched banks for their home loan, credit card or transaction account last year.
“The numbers speak for themselves when we say competition is robust, with 15% of everyday transaction account holders, 10% of credit card holders and 5% of mortgage holders switching banks in the 12 month period.
“On the flip side, most customers are satisfied with their bank product, with 79% of everyday transaction, 75% of credit card and 67% of mortgage owners saying they are ‘very satisfied’ or ‘satisfied’ with their providers.
“The message to all Australians is if you aren’t satisfied with your home loan, credit card or other product it pays to shop around to get the best deal possible,” she said.
For a copy of the report click here.
KEY FIGURES
| Account | Everyday Transaction | Credit Card | Mortgage |
| Satisfied | 79% | 75% | 67% |
| Actively Searching | 22% | 21% | 23% |
| Switched | 15% | 10% | 5% |
Source: Deloitte ‘Choice in Banking’ report 2019. % = per centage of adult account holders based on population 18 and over, June 2018 minus those without a transaction account, which is just over 2% of the adult population.
Note: columns do not add to 100% because survey questions about satisfaction levels, searching and switching were separate questions.
ENDS
Contact: Rory Grant 0475 741 007
Latest news
Australian banks are rolling out disaster support to customers affected by the current bushfires in Victoria. ABA CEO Simon Birmingham said banks were continuing to monitor the evolving situation across Victoria and are on standby to assist impacted customers. “This is an extremely challenging time for many Victorian communities, households and businesses,” Mr Birmingham said. “There are now special arrangements in place for those who may need additional financial assistance from their bank in the coming days, weeks and months. “Banks have highly… Read more »
Banks stand ready to support customers in north and north-west Queensland currently experiencing heavy rainfall and flooding. ABA CEO Simon Birmingham said customers didn’t have to tough it out on their own with banks on standby to assist communities get through this challenging time. “Banks recognise the significant financial and emotional toll an extreme weather… Read more »
The ABA acknowledges the release of the 2025-26 Mid-Year Economic and Fiscal Outlook. The Government’s forecasted $8.4 billion reduction in the deficit over the forward estimates including a $5.4 billion reduction for year’s deficit is welcome. Lower deficits and claimed savings of $20 billion over the next four years is a beginning towards ensuring our national finances are on a more sustainable footing. While this Budget update contains lower forecasts of spending as a share of GDP, the ABA notes the importance of ongoing spending restraint to help reduce inflationary and interest rate pressures. Banks… Read more »