Between Dec 2009 and Dec 2013, the NAB grew their personal traditional banking customers by 701,000 (up 28.7%) to be well ahead of the gains made by their major competitors the CBA Group which increased personal customers by 406,000 (up 5.7%), the ANZ grew by 339,000 (up 9.7%) and the Westpac Group gained 235,000 (up 4.8%). The big four dominated customer gains over the period, with the next highest gains going to ING Direct with an increase of 123,000 (up 18.2%). These figures are based on the latest findings from the Roy Morgan Consumer Single Source Survey of approximately 50,000 people p.a.
Traditional banking customers are those who have at least an account, card or loan with an institution. Overall the total number of them has increased by 1.4 million (or 8%) in the last 4 years. This group are the core customers of any bank and with this market fairly saturated, they need to fight hard to increase their share.
Of the major four banks, the CBA Group has the most personal banking customers (7.55 million), followed by the Westpac Group (5.16 million), the ANZ (3.83 million) and the NAB Group (3.14 million). The gains made by the NAB over the last year has strengthened their relative position considerably despite still having the smallest personal customer base of the big four.
Increase in Personal Banking Customers* 2009 to 2013
Among the smaller banks, ING Direct increased by 123,000 (up 18.2%), Bendigo Bank grew by 78,000 (+7.9%), Teachers Mutual increased by 47,000 (+26.7%) and Macquarie Bank was up by 46,000 (+20.4%).
Two of the major foreign banks that didn’t perform so well were HSBC with a gain of only 7,000 customers and Citigroup which showed a decline of 16,000 traditional banking customers.
It is interesting to note that the NAB and Westpac had their biggest growth rate among the bottom 20% of the market (people holding less than $2,000 in traditional banking footings), while the ANZ had their strongest growth rate among customers with financial services in the top 40% ($48,000 or more in financial services).
Norman Morris, Industry Communications Director Roy Morgan Research says:
“Traditional Banking customers represent the back-bone of an institution’s customer base; they are the customers who hold the more traditional types of banking products such as regular deposits and transactions accounts, mortgages, personal lending and/or major credit card products.
“The Break-up campaign from NAB in 2011 and their strategy to target the mortgage market appears to have paid off in terms of increasing its customer base, although the focus on lower fees appears to have strengthened their position at the bottom end of the market. It is now important for NAB to make sure that their new customers are engaged, remain loyal and become advocates for the brand. The challenge for all banks is to increase the number of products or cross sell held by both new and existing customers.
“With new advancements and innovations in the Banking and Finance industry such as mobile payment systems, virtual currencies like Bitcoin, and mobile banking apps and technologies, financial institutions cannot afford to neglect their core banking offering. In today’s market it is more important than ever to understand customers and their banking needs and to keep updated so as to retain and attract new customers.”
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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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