Thursday, June 6th, 2013 - Roy Morgan Research
In the past five years, there has been a generational change among Cash Management Account holders. The number of Pre-Boomers holding a CMA has decreased by 20,000 but the number of Baby Boomers and Gen X holding a CMA has increased by 93,000 and 60,000 respectively.

Over the past five years, there has been a generational change among holders of Cash Management Accounts (CMAs). The number of Pre Boomers holding a CMA has decreased by 20,000 (5%) but the number of Baby Boomers and Gen X holding a CMA has increased by 93,000 (19%) and 60,000 (19%) respectively. It is interesting to note that even though both Baby Boomers and Gen X make up a smaller proportion of the population than they did five years ago, their share of the CMA market has grown over this period. These are the latest findings from the Roy Morgan Research Consumer Finance Survey of over 50,000 interviews per annum.

CMAs are one of the key types of financial products that Australians are using for their cash holdings and are held by approximately 8% of the population. They can be used as a ‘parking place’ for money when investors are between investment options, such as share trading. In the 12 months to March 2013, there were about 1½ million Australians holding a CMA. Baby Boomers (those born 1946-1960) are the most important generational segment for CMAs with 38% of all CMAs accounting for 45% of all CMA dollars.

Over the 12 months to March 2013, the leading institutions providing CMAs were the CBA (26% of CMA holders), ANZ (14%), Bendigo (11%), Macquarie (10%) and NAB (9%). From the perspective of account dollars the leading players were CBA (30%), ANZ (16%), NAB (12%), Macquarie (11%) and St George (9%). An explanation for the CBA’s strength in the CMA space may be its link to CommSec and share trading accounts and the fact that 34% of Australians bank with the CBA. CommSec provides its customers with discounted trades if investor’s funds are linked to a Commonwealth Direct Investment Account. The ANZ provides similar links to E*Trade via its ANZ V2+Broking CMA.

Source: Roy Morgan Single Source (Australia), 12 months to March 2009 & March 2013 sample = 4,216 & 4,276 respectively

Norman Morris, Industry Communications Director Roy Morgan Research says:

“With the generational change taking place in the CMA marketplace, there may be opportunities for new financial institutions willing to take on the established players in the CMA space by providing enhanced links between their CMAs and broker trading accounts.”

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In the past five years, there has been a generational change among Cash Management Account holders. The number of Pre-Boomers holding a CMA has decreased by 20,000 but the number of Baby Boomers and Gen X holding a CMA has increased by 93,000 and 60,000

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