Police Bank welcomes research on account switching
Police Bank today welcomed independent research released today showing almost 50% of people would be prepared to dump their banks if red tape is eliminated making it simpler to switch accounts.
The Roy Morgan research found one in five Australians are likely to change financial institutions in the next year, rising to almost 50% of people if the paperwork and administrative effort was substantially reduced.
Police Bank today welcomed the research and pointed to the Federal Government’s “tick and flick” account switching reforms starting in July that will mean Australians can dump their current financial institution more easily than ever before.
“This report illustrates the views of many in our local community who are looking for better value and service from their financial institution,” Police Bank CEO Bruce Williams said.
“We know from feedback from our Members that they want competitive interest rates, fairer fees and charges and the convenience of ATM networks.
“At Police Bank we look forward to talking to Members who are itching to switch accounts, something they can do more easily when new account switching reforms begin on July 1.”
The Roy Morgan research commissioned by Abacus was a National web-based survey among 18-64 year olds and delivered the following key findings:
- 21% of people are likely to change their main financial institution in the next 12 months, with interest rates not being competitive (35%), and high or unfair fees (30%) listed as the main reasons for the change.
- 49% of people would be likely to change their main financial institution in the next 12 months if the administration process of moving finances, direct debits and scheduled payments could be handled automatically by their new financial institution.
The findings should support Federal Government initiatives to make it easier for unhappy consumers to switch bank accounts.
From July 1, instead of requesting a list of regular debits and credits from their ‘old’ bank, Australians can let their ‘new’ financial institution do the work for them by signing authorisation forms to allow the establishment of regular debits and credits to the new transaction account.
The Roy Morgan research on account switching also found that:
- The most frequently cited factors considered important when considering changing banking provider were the costs of fees and charges (92%), competitiveness of interest rates (78%), and the convenience of branches and ATMs (75%).
- More work needs to be done to build on the considerable public and consumer sentiment for Mutual or Customer Owned Banks to increase awareness of our financial institutions, particularly among younger age groups.
“We acknowledge the findings of this report and look forward to continuing the conversation with the communities we represent about the better value customer owned banking alternative we offer.” Bruce Williams said.