Almost 1.6 million Australians aged 14+ are considering taking up a new banking product in the next 6 months. Of these 575,000 are considering a new home loan, followed by Savings Accounts (463,000) and Credit Cards (284,000). These are the latest findings from the Roy Morgan Research Consumer Single Source survey.
The key question among the financial institutions is which institution people are considering to take their product up with. As expected the banks are top of mind for accounts, credit cards and loans, with over three quarters only considering a bank for their new product compared to less than 10% only considering a non-bank such as a building society, credit union or specialist provider. Few people consider a combination of both a bank and non-bank.
When comparing the types of institutions being considered for three key banking products, it appears that people who are considering taking up a new home loan are more likely than those taking up a new savings account or new credit card to be considering more than one bank or considering both a bank and non-bank. A comparatively higher proportion of people are also undecided about the institution they would considering taking up their home loan with.
Norman Morris, Industry Communications Director says:
"While the banks focus on winning over customers when people are looking to switch products from one institution to another, the need for new products offers another ripe opportunity. A high proportion of people solely consider going to one bank for their new finance products, which creates a tough competitive environment for smaller institutions. This highlights how critical it is to keep customers satisfied for additional cross sell opportunities and maintain high levels of advocacy and awareness if they are to win new customers.
"The comparatively higher number of people considering taking up new debt relative to a savings account may also be a reflection of the high levels of consumer confidence we are currently seeing. Nonetheless when it comes to home loans, people are looking beyond the simplicity of considering only one bank and it appears there is a broader list of institutions in their consideration set as they review their options for a competitive loan product."
For comments or more information please contact:
Norman Morris, Industry Communications Director
Telephone: +61 (3) 9224 5172
Mobile: +61 402 014 474
Email: [email protected]
Image 1: New Banking Product Considering Taking Up – Next 6 Months, Source: Roy Morgan Consumer Single Source, 12 months to October 2013, n = 49,179
Image 2: Institution Type Considering Taking New Banking Product Up With, Source: Roy Morgan Consumer Single Source, 12 months to October 2013, n = 3,678
Roy Morgan Research
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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