(17 February 2010 – Australia) Despite churn intentions among Top 500 companies recently reaching unprecedented lows, this trend is beginning to change according to East & Partners’ latest Institutional Transaction Banking report.At the start of the global financial crisis, towards the end of 2007, nearly
16 percent of top 500 companies switched some or all of their banking products
to another provider during the previous six month period. At the end of 2009,
this figure fell to just 4.1 percent.
However, big businesses have suggested that this preference for sticking with
their banks could be about to change.
Businesses have indicated a much greater likelihood to change their primary bank
over the next six months compared to mid-2009. The number of businesses with at
least some intention to change their primary banker has almost doubled in the
last six months, from 10.4 percent in May 2009 to just under twenty percent in
November 2009.
East & Partners’ financial markets analyst, Peter Drennan, said “fundamentally,
businesses still remain cautious about changing their primary provider against
the backdrop of the current credit environment. This is clearly resulting in
relatively low churn intentions”.
“However, as credit conditions begin to thaw, businesses are evidently beginning
to look outside of their existing relationship to see what alternatives are
available, ultimately resulting in the prospect of greater churn in 2010”, Mr
Drennan added.
About East & Partners’ Institutional Transaction Banking Markets Report
East & Partners’ Institutional Transaction 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
transaction banking products among Australia’s top 500 companies by revenue. The
program is based on structured interviews with some +/-450 enterprises every six
months.
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