(24 August 2012 – Australia) Pre GFC, Customer Satisfaction and Advocacy were sure-fire ways of predicting Relationship Share outcomes, banks with happy customers were usually banks with the most customers.In today’s economy however, Mind Share has become the major driver of
Market/Relationship Share. Respected business banking analysis company East &
Partners has highlighted this correlation in their latest research among
Australian Corporates.
When asked which bank was recalled first for Cash Flow Financing, 14.1 percent
of corporate CFO’s nominated NAB, NAB is also the primary provider of Invoice
Discounting needs among this same group, with a customer relationship share of
46.9 percent, however both Mind Share and Market Share have begun slipping over
the last few years.
Bendigo Adelaide bank which has been experiencing a steady climb in recognition
in this space has also begun to see the benefits with Market Share increasing in
line with their Mind Share.
Providers of Cash Flow Financing for Australian Corporates
| Bank | % Share of | 2009 | 2010 | 2011 | 2012 | % Change |
| NAB | Market | 48.8 | 48.3 | 48.8 | 46.9 | (2.9) |
| Mind | 18.8 | 15.9 | 15.0 | 14.1 | (11.3) | |
| SGB | Market | 16.3 | 17.0 | 15.7 | 14.5 | (14.7) |
| Mind | 7.7 | 8.1 | 6.8 | 5.4 | (33.3) | |
| BEN | Market | 7.3 | 7.8 | 8.7 | 8.9 | 14.1 |
| Mind | 3.1 | 6.6 | 7.8 | 8.8 | 33.3 |
Source: East & Partners Australian Corporate Banking Markets program
Further highlights of this analysis report include:
-
Relationship Manager Engagement
-
Borrowing Intentions
-
Wallet Share by Individual Product and Provider
-
Business Churn
- 23 product markets analysed
David Brown, East & Partners’ Head of Client Development commented, “Post GFC,
businesses have seen their core banking relationships fundamentally altered with
costs continuing to rise and changed service propositions from providers. The
greatest source of advertising ‘word of mouth promotion’ can no longer be relied
upon to drive customer acquisition or gains in wallet share, with advocacy for
banks now at record lows.
With Mindshare being now the greatest predictor of wallet share, banks are
looking to a myriad of positioning activities to ensure they are top of mind” Mr
Brown added.
About East & Partners’ Australian Corporate Banking Markets report
A six monthly analysis of treasury, financial markets, debt, corporate finance &
advisory and working capital product engagement by Australian corporate
businesses with an annual turnover of A$20-530 million.
The program provides market share analyses by primary and secondary banker,
weighted share of wallet, share of customer mind and panel positioning. Also
monitored are corporate borrowing expectations, individual and market wide
importance ratings for product and relationship banking attribute, including
individual bank Relationship Manager performance, together with bank-by-bank
satisfaction ratings.
For more information or to interview East & Partners on this report, please
contact:
Sian Dowling
Marcomms & Client Services
East & Partners
t: 02 9004 7848
m: 0420 583 553
e: sian.d@eastandpartners.com