The Australian financial services market is highly developed, although it is largely dominated by its big four - Commonwealth Bank (CBA), NAB, Westpac, and ANZ, which each own a number of other banks with strong brands in the market such as St.George, Bank west, and Bank of Melbourne. The country has a very large banked population who favor providers with good reputations and competitive rates. Although a sizable minority of consumers have already used fintech or alternative providers, such as peer-to-peer (P2P) lenders, skepticism about their benefits remains dominant. Usage of online has taken over branches for a number of basic banking tasks (with mobile hot on its heels), and is growing for complex interactions, particularly among younger consumers.
- The transactional account market is dominated by the big four, largely because consumers favor reputation and an established brand. However, the existence of a local branch also features heavily in the decision-making process, likely due to the perceived convenience of having ATMs nearby, as Australians generally incur fees by using another bank's ATM. Online channel usage is extremely high and increasingly involves complex transactions.
- Rates and reputation are the main factors in choosing a savings account, although as branches remain the most dominant application channel for this product this indicates that a high proportion of savers are taking up this product with the same bank they hold their transactional account with. Consumers are mainly saving for the unplanned, so regular small saving tools may help attract these prospects.
- 41% of consumers in Australia have a residential mortgage, three quarters of them holding it with one of the big four, which are mainly competing on rates - by far the most important factor in the decision-making process. Factors related to payment flexibility (such as overpaying or underpaying) and redrawing facilities are also key. A significant proportion acquire their mortgage through an independent broker, so building relationships and offering attractive commissions is vital.
- The personal loans market is the least saturated market, with only 17% holding this product, and is most open to new, innovative entrants such as P2P lenders, which while still evidencing skepticism are showing some potential in attracting new customers with more competitive rates and better customer service. The big four have lost considerable market share over the last 12 months.
Verdict Financial's "Retail Banking Country Snapshot: Australia 2016" reviews the retail banking sector in Australia, with a particular focus on the current account, savings, mortgage, and personal loans markets. It includes both market-level data and insight from our global Retail Banking Insight Survey.
The report offers insight into:
- How consumers take out and use their financial products, and how this has changed in recent years.
- Which providers dominate the current account, savings, mortgage, and loan markets, and what factors persuaded their customers to choose them.
- The extent to which consumers are using online and mobile channels to research, take out, and use their financial products.
Reasons to Buy
- Future proof your strategy with market sizing, forecasts, and analysis of key developments currently affecting the Australian retail banking sector.
- Target consumers with inside knowledge of their true behaviors and attitudes, with detailed analysis from our proprietary insight.
- Learn about the impact that new entrants and distribution channels will have on the market.
BANK INFRASTRUCTURE & REGULATION
Single User License:
Corporate User License:
Commonwealth Bank of Australia
Bendigo & Adelaide Bank
Bank of Queensland
Current accounts, savings accounts, mortgages, personal loans, online, mobile, Transaction account
select a license
NEWSLETTER BY CATEGORY
An excellent provider. Thorough, precise and outstanding insight. They drill down to what we need and their reports are effective at integrating text with supporting graphics and charts. Their reports are a great resource to go back too. ... "General Manager SBU Manufacture, PT. KIMIA FARMA, TBK"
Coherent, high-quality, thoroughly-researched reports. We received a very quick response to all our queries which eventually expedited the entire process.... "VP Innovation, Engineered Profiles LLC"
Well structured, the insights they shared with us were very helpful and reliable. Their timely assistance make their services invaluable to us. I would highly recommend them and would definitely use them again in the future if needed... "President, VPP E-Data Services, VPP E-Data Services"
The report sent to us was on the point, and its information was quite extensive, well structured, and well researched. More importantly what we valued was your response time and professionalism. As a leading global consulting firm, our clients expect high quality deliverables in short periods of time, so a reliable research partner is essential. For the price that you have charged the quality of your services were exceptional. We look forward to continue our relationship with your team on future engagements.... "Senior Associate, Booz Allen Hamilton"
This is with regards to your report on India PVC pipes and fitting market outlook industry outlook to 2019. This is a very well written report and accept my compliments on the same.... ... "Mohit Mittal, Consultant, KPMG Advisory Services"