Top 500 lack appetite to move from Big 4
A surprisingly large 91.0 percent are unlikely or very unlikely to consider a change to a non-big four bank for their primary transaction banking, leaving less than a 10 percent share of these relationships "open" for competitive providers.
A total of 63.0 percent of Australia’s Top 500’s transaction banking relationships are currently subject to a period/term contract, with 40 percent of these contracts set to expire within the next two years, with a further 46.0 percent expiring within the next two to four years.
Of these businesses 75 percent have said that when renewing these contracts they will definitely or likely be going to open tender – obviously, however, only across the Big Four domestic banks.
Highlights of the Institutional Transaction Banking Market report include:
-
Market Share and Wallet Share
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Churn Levels and Futures
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Account Manager Satisfaction Ratings with Customers
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Service Importance Ratings
- Product Satisfaction Ratings
East & Partners’ Principal Analyst Paul Dowling commented, "With payments,
cash and deposit business now central to bank relationships with their big
customers, transaction banking is definitely the key market share battle ground.
There are obvious reasons for why domestic banks dominate in-country transaction
services, although these ratios for the Australian market are significantly
higher than we find in many other markets around the region".
"With service contracts averaging a five year tenure and nearly two thirds of
this institutional market subject to such period arrangements, every tender has
to be a winner," Mr Dowling added.
About East & Partners
East & Partners is Asia-Pacific’s leading business banking and advisory firm.
East's research programs and expertise in the Institutional, Corporate, SME,
Business, Investment and Financial services markets has enabled the firm to work
with virtually every major bank within the region and international clients
based in North America and Europe.
Focusing on the needs and priorities that make every client different, East
devises and implements strategic action plans that have measurable returns on
investment for its clients through the delivery of bespoke, thought-leadership
and multi-client research programs. This enables the firm’s clients to execute
bullet-proof regional, national and global strategies based on the "real voice"
of many thousands of business customer interviews annually.
Note: Business customer Segments
› Institutional – A$530+ million
› Corporate – A$20-530 million
› SME – A$5-20 million
› Micro – A$1-5 million
For more information or to interview East & Partners, please contact:
Sian Dowling
Marcomms & Client Services
East & Partners
t: +61-2-9004 7848
m: + 61-420 583 553
e: sian.d@eastandpartners.com
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