Bank brand loyalty suffers
Bank customers are swayed by lower banking fees and better banking infrastructures, reported research company Datamonitor.
According to the study, ‘Australian Consumer Deposits’, 43% of customers who had moved their transaction account to another bank in the last 12 months, indicated that lower fees from a competitor bank was one of the main reasons for transferral.
Infrastructure is a further drawcard for customers, as 26% of those interviewed, switched to a bank with better branches and convenient ATM location facilities, said Harry Senlitona, senior analyst at Datamonitor.
For the future, a key challenge which banks face is to overcome consumers’ low level of loyalty, especially as Gen Y are five times more likely to switch their account to another bank, than older generations.