(19 August 2010 – Australia) Consumers are leaving their bank in search of better fees and better banking infrastructures, according the study ‘Australian Consumer Deposits’ by research house Datamonitor.The study revealed that 43 percent of customers who had switched from their transaction account in the last twelve months indicated that lower fees from a competitor bank was one of the main drivers behind the change.
Infrastructure is a further drawcard for customers, as 26 percent 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, Mr Senlitona added.