Roy Morgan Research CEO Michele Levine presented the latest State of the Nation Report in Melbourne and Sydney this week.
The report casts a spotlight on the dramatic changes to the financial services industry since the 1997 Financial System Inquiry, compiled using 17 years’ worth of consumer-focused financial metrics and a detailed perspective on the dynamics of this complex market.
With the 2014 Financial System Inquiry now underway, this report provides an invaluable update on the issues that shaped the 1997 inquiry and considers how they will inform the current one.
- Since 1997, the Australian consumer financial services market has grown at ten times’ the rate of the population!
- Superannuation and lending have been the principal drivers of growth, with super now the major financial category, equivalent to just under half the total market value of financial services. Lending grew by 324%.
- The over-50s are an increasingly dominant force, comprising 39.5% of the population 14+ and 55.9% of the financial services market
- The top 20% of customers based on financial value control 64.8% of the value, while the bottom 40% account for just 2%
- Since 1997, the rise of technology has been stratospheric, and has impacted heavily on channel selection. Internet banking has surpassed branch usage, and mobile banking is the latest growth channel – especially among younger age groups.
- ‘Big 4’ banks have increased their market strength, despite the 1997 inquiry predicting that new entrants and shifting market dynamics would result in more competitive conditions.
- The ‘Big 4’ banks have increased their customers’ overall ‘share of wallet’ but customer loyalty remains low.
- Customers’ satisfaction in their banks has skyrocketed, representing one of the market’s biggest changes since 1997, and switching intentions are down. But businesses are less satisfied with their banking relationships.
- Only 25% of Australians rate financial planners favourably in terms of their ‘ethics and honesty’.
As usual, this quarterly State of the Nation report also contains the latest statistics on Australians’ attitudes and behaviours as revealed through extensive face-to-face interviews across the country.
For more information or to organise an interview with CEO Michele Levine, please contact:
Office: (03) 9223 2486
Mobile: 0425 812 773
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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