(11 November 2009 – Australia) Australia’s Big Four banks are the clear winners in the highly competitive SME deposit market, raking in more customers and more cash than their smaller counterparts.The latest East & Partners’ Australian SME Banking Markets Report for the six
months to October 2009 shows that the Big Four are succeeding in the
increasingly competitive market for small business deposits.
Primary market share for the Big Four banks in small business term cash deposits
has increased by over 16 percent in just the past year, to 72 percent of the
market.
The secondary market for deposits is also shrinking, with only 40 percent of
businesses placing their term deposits with more than one bank, down from 60
percent just one year ago.
“In the current climate, SMEs are turning to deposits as a safe investment
vehicle, while banks are seeking to gain deposits to firm up their balance
sheet”, East & Partners’ financial markets analyst, Peter Drennan, said.
“Clearly, small businesses are sticking with the safety of the Big Four, while
also consolidating products based on lending relationships”, Mr Drennan added.
“The Big Four are obviously taking advantage of their strong market position and
benefiting from growing this critical source of funding”, Mr Drennan concluded.
About East & Partners’ SME Banking Markets Program
East & Partners’ SME Banking Markets Report is an ongoing six-monthly research
service designed to deliver bank market share, wallet share, customer
satisfaction, mind share, engagement and churn analysis for banking products
among small to medium enterprises turning over A$1 to 20 million per annum. The
report is based on interviews with a structured sample of 1,500 SME enterprises.
For more information, please contact:
Brett Williamson
Chief Operating Officer
East & Partners
t: 02-9004 7848
m: 0403 499 844
e: brett.w@eastandpartners.com