Consumer sentiment research regarding the ‘big four’ banks has provided AMP with further material as it continues to push its case for the creation of a fifth pillar in the industry.
AMP has stated that it will keep an eye on AXA Asia Pacific, considering that its proposed acquisition by NAB has been presented with various obstacles by the Australian Competition and Consumer Commission (ACCC). AMP’s argument has been that an AMP/AXA merger would create a critical ‘fifth pillar’ in Australia’s financial services industry.
As the ACCC prepares to release its second report on NAB’s bid, AMP has released research that reveals that 78 per cent of Australians believe bank acquisitions should be restricted.
The research into community sentiment towards the banking and financial services industry was conducted by Auspoll earlier in the year. AMP stated that the research revealed a strong sense among Australians that despite dissatisfaction with the customer service provided by the major banks, there was a strong sense that nothing could be done. It added that the research showed widespread frustration among Australians with their lack of consumer power and frustration that Governments continue to allow the big four banks to hold such market power.
Some 71 per cent believed there needed to be more competition within the banking and financial services industry, while 78 per cent believed the four major banks should be restricted from taking over other companies.
More than half (53 per cent) of those surveyed believed that banking mergers have resulted in less choice for customers, with only 3 per cent stating there was a lot more choice and 16 per cent slightly more choice as a result of bank mergers.
Some 70 per cent believed the Government was too soft on the four major banks, while 66 per cent wanted to see the power of the big four reduced. Only 28 per cent stated that the current level of regulation of the banking and financial services industry was adequate, while 68 per cent believed there needed to be more regulation by the Federal Government.
The research comprised eight focus groups across Australia and an online survey of 1,200 Australians, conducted beween 9-11 March, 2010.
