(16 September 2025) Transaction banking (TB) has long been seen as “sticky” – a reliable anchor product that underpins broader business banking relationships. But our latest research shows this stickiness is under real pressure. Switching intent among corporates is rising fast, and incumbent leaders such as ANZ, Westpac, BNZ, and HSBC risk losing ground if they fail to adapt.
Looking across to Australia offers a cautionary tale. In 2002, just one in five Commercial businesses had held their primary TB account for less than two years. Today, it’s one in two. The message is clear: account lives are getting shorter, and loyalty is no longer a given.
What’s Driving the Shift?
Customers are increasingly vocal about what they want from their providers. In the New Zealand market, the top three improvements mid-market businesses are demanding are:
- A closer understanding of their specific business needs (40.5%)
- Lower bank fees and charges (18%)
- Sector-specific expertise (13.1%)
When clients do switch, their decisions are led by:
- Better pricing (31.3%)
- More flexible terms (20.3%)
- Improved customer support (18.8%)
Other pain points include a lack of proactive engagement, opaque fees, and underwhelming digital features. In short, if banks don’t meet expectations, treasurers are increasingly willing to “vote with their feet.”
The Stakes for Banks
Winning even partial wallet share from an incumbent TB provider is difficult, time-intensive, and expensive. Yet the potential upside is significant: transaction banking remains the anchor of the corporate relationship, and capturing TB share often translates into wider lending, FX, and trade finance flows.
The lesson for banks is simple but urgent: success now hinges on understanding your clients at a granular level – by sector, by business model, by growth trajectory. Client identification has become a make-or-break factor for sustaining TB success.
As competition intensifies and churn accelerates, the banks that invest in evidence-based, client-driven insights will be the ones to consolidate share while others leak it.
At East & Partners, we specialise in Voice of the Customer insights, evidence-based analysis that helps banks cut through the noise and focus on what clients truly value.