NAB losing Trade customers, but those who stay bank more
Following the latest round of East & Partners’ Australian Trade Finance Market Program, it was found that over the last 5 years, NAB has experienced significant customer churn. However, businesses that remain with the bank, on average allocate a larger portion of their trade finance wallet to NAB relative to the wider market.
Since 2012, the bank has shed around 20 percent of its customers, with its “Big Four” rivals the major beneficiaries.
Despite its high rate of customer churn, NAB achieves above average wallet share, indicating that those trade finance customers that continue to bank with NAB are loyal and will prove to be difficult to lure elsewhere. NAB’s performance comes as average trade finance wallet share continues to slide across all business segments.
What’s driving these changes? According to East’s research several key factors, including: “Price Competitiveness”, “eTrade platforms” and “Digital Capabilities”.
Banks operating in Australia will need to monitor changing customer behaviour, and expectations in the trade finance market in order to grow their share of the market, win wallet share and drive mind share among businesses.
To find out more about East & Partners’ Australian Trade Finance Markets Program, contact East & Partners.