The Commonwealth Bank (CBA) is the most popular bank amongst the wealthiest 10 per cent of Australians, with Roy Morgan’s Wealth Report finding that it is the bank of choice for 36.7 per cent of those customers.
Despite a year of controversy in front of the Royal Commission, the rest of the Big Four predictably proved the next most popular, as the chart below shows, with St George filling out the top five.
Interestingly, despite having the biggest market share, the top decile of wealthiest customers accounted for just 10.1 per cent of CBA’s total personal customers. In contrast, more than a quarter of Macquarie’s customers wealthiest 10 per cent, and 22.3 per cent of Citibank’s and 16.9 per cent of St George’s and ING’s.
While only representing 10 per cent of the population, this wealthiest segment would be significant to banks as it accounts for nearly half of total Australia households’ net wealth.
“This segment not only has clearly the highest average net worth but over the last decade it has had the highest growth rate with over 70 per cent, representing an increase of around $800,000 in average net wealth,” Roy Morgan industry communications director, Norman Morris, said.
“The real value of this segment to financial institutions is the fact that on average they hold over $750,000 across all financial services including loans, credit card outstanding, wealth management and superannuation.”