Wednesday, March 20th, 2013 - Roy Morgan Research

The recent flurry of advertising by the major banks following ANZ’s announcement last year that it was dropping the National Bank brand has driven up switching rates among New Zealand consumers, Roy Morgan Research shows. 

The recent flurry of advertising by the major banks following ANZ’s announcement last year that it was dropping the National Bank brand has driven up switching rates among New Zealand consumers, Roy Morgan Research shows.

The proportion of Kiwis who switched their Main Financial Institution (MFI) in the previous 12 months is now approaching double the 5.9% low in April last year. The increase equates to over 100,000 more people switching in 2012 than did in 2011.

Our current research shows that of those customers who have switched from National Bank, around 60% went to ANZ—although the latest data include switchers from within the year prior to the announcement.

Despite its in-house advantage, ANZ is working hard to retain National Bank’s traditionally high-worth, multi-product customers by promoting the ‘the new ANZ’ as being a fusion of the best of both banks.

But other banks are circling the newly itinerant market share: Kiwibank is promoting stress-free switch assistance while Westpac is directly targeting National Bank customers who are unhappy being shoehorned into ANZ.

Kiwibank and Westpac have each chalked up around 6% of switching National Bank customers, with ASB 9% and BNZ 4%.

Pip Elliott, General Manager, Roy Morgan Research NZ, says:

“In such a competitive market, the major banks have for some time been in battling to poach customers from each other by promoting the ease and potential benefits of switching. Many customers, however, will only switch their MFI when it comes to ‘moments of truth’, such as the renewal of their mortgage or taking out a new loan.

“2012 saw a dramatic increase in switching activity, due in large part to ramped up campaigning from all major banks following ANZ’s dissolution of the National Bank brand.

“Early indications suggest Westpac’s ‘Is your bank making you blue?’ and Kiwibank’s ‘How to change banks’ commercials have yet to really challenge ANZ’s in-house advantage in retaining the National Bank customers.”

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Sources: Roy Morgan Single Source (New Zealand), November 2011 – January 2013, rolling quarters (n = 12,512) and Roy Morgan Single Source (New Zealand), September 2012 – January 2013 (n = 102). *MFI = Main Financial Institution

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Roy Morgan Research is Australia’s best known and longest established market research and public opinion survey company. Roy Morgan Single Source is thorough, accurate, and provides comprehensive, directly applicable information about current and future customers. It is unique in that it directs all the questions to each individual from a base survey sample of around 55,000 interviews in Australia and 15,000 interviews in New Zealand annually - the largest Single Source databases in the world. The questions asked relate to lifestyle and attitudes, media consumption habits (including TV, radio, newspapers, magazines, cinema, catalogues, pay TV and the Internet), brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation and leisure activities. This lead product is supported by a nationally networked, consultancy-orientated market research capability.
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Keywords

1 in 10 kiwis switched banks, bank , 2012

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