Personal and business customers of the major banks are unlikely to purchase superannuation from their bank. During the most recent survey period (12 months to May 2013), no more than 10.4% of the personal customers of any major bank who have superannuation had it with their bank; likewise no more than 19.8% of business banking customers who have corporate superannuation had it with their bank. Over the past three years, there has been minimal change in the proportion of personal and business superannuation purchased from each of the banks. These are the latest findings from the Roy Morgan Research Consumer and Business Finance surveys of over 50,000 and 13,000 interviews per annum respectively.
Among personal banking customers with superannuation, Westpac currently has the highest cross-sell at 10.4%, followed by NAB (9.5%), CBA (8.3%) and ANZ (6.2%). Among customers of the major banks who hold superannuation anywhere, approximately 50% hold it with an industry fund, around 14% hold it with a government fund, and approximately 8% are with the AMP Group.
Among business banking customers with corporate superannuation, Westpac currently has the highest cross-sell at 19.8%, followed by CBA (17.4%), NAB (13.0%), and ANZ (12.6%). Among major bank business customers who hold corporate superannuation anywhere, approximately 45% have it with an industry fund and approximately 17% have self managed super.
Source (Chart 1): Roy Morgan Single Source (Australia), 12 months to May 2011, 2012 & 2013 sample = 26,013, 27,568 & 26,193 respectively
Source (Chart 2): Roy Morgan Single Source (Australia), 12 months to May 2011, 2012 & 2013 sample = 9,185, 8,613 & 8,422 respectively
Norman Morris, Industry Communications Director says:
“To date, the major banks have been largely unsuccessful at gaining the superannuation business of their customers because they have been up against specialist providers such as Industry Funds, Public Sector Funds, AMP and Self Managed Superannuation.
“If the banks are to get more of their clients’ superannuation business, there needs to be some advantage to the customer in consolidating their financial products with them.
“The financial performance of the major banks’ superannuation funds as measured by Roy Morgan Research personal customer satisfaction, currently presents a problem as they lag well behind self managed funds, public sector funds, industry funds. Performance is obviously a key factor in gaining superannuation business.
“The branding of the big four banks’ superannuation funds is potentially another barrier in gaining their business as they are all different to the brand of their bank i.e. MLC, Colonial First State, BT and OnePath are unlikely to be known as well as the bank that they are a subsidiary of.
“By definition, bank customers have come to their bank for banking products such as loans, deposits, cards, etc and therefore need to be convinced that the bank they deal with has sufficient expertise with superannuation to match the specialists.
“Cross-sell of financial products is an increasingly important target of all the major banks. With the launch of Future of Financial Advice (FOFA) compliant products such as BT’s Super For Life (Westpac) and the Colonial First State’s Essential Super – Lifestage Fund (CBA), it will be interesting to observe how the cross-sell of products such as these perform over the coming months and years.”
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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