Banks ahead of the game on ‘share of wallet’
While the Commonwealth Bank of Australia (CBA) is the only big four bank obtaining more than 60 per cent of customers’ business, all major banks have shown ‘share of wallet’ improvement over the last decade thanks to improved financial behaviour, according to Roy Morgan Research.
Roy Morgan’s single source survey conducted between May 2016 and May 2017 showed Bank SA led the pack with 60.9 per cent share of wallet, ahead of CBA (60.4 per cent). National Australia Bank (NAB), ANZ, and Westpac improved to 55.3 per cent, 52.4 per cent and 52.5 per cent respectively.
The big four showed improvement in share of wallet, which correlates to improvements in satisfaction over the period, but continued to lag when scaled against smaller banks. BankWest took the third spot behind BankSA and CBA for share of wallet, whilst Suncorp was fifth between NAB and Westpac, with St George and Bendigo Bank close behind.
Roy Morgan industry communications director, Norman Morris said the results showed that improvements of share of wallet took time to accumulate.
“[It’s] evidenced by the fact that the major banks have taken a decade to show significant improvement,” he said.
“There is a strong indication that the major improvement in customer satisfaction with banks over this period is likely to have contributed to this positive trend in “share of wallet”.
“The challenge now is to maintain this momentum by improving the proportion of ‘very satisfied’ customers in the high value (top quintile) segment.”
AUTHOR
Hope William-Smith
Recommended for you
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
Australian investors are more confident than their APAC peers in reaching their financial goals and are targeting annual gains of more than 10 per cent, according to Fidelity International.
Zenith Investment Partners has lost its head of portfolio solutions Steven Tang after 17 years with the firm, the latest in a series of senior exits from the research house.
