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Bank brand loyalty suffers


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.

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