Millions looking to leave major banks
New research has found that over two million Australians are currently seeking new banking providers, with many currently customers at one of the big four.
The research produced by Nielsen found that 2.1 million Australians are seeking new providers and 67 per cent of them are currently customers at one of the big four.
The research found that Australians were increasingly looking away from the established banks and instead looking at digital banks, with a five-percentage point increase in Australians looking to change to digital banks in the past twelve months.
Nielsen’s head of financial services and insurance Jo Brockhurst believed that the open banking legislation would see this number increase as consumers were given more choice.
“Open banking will allow consumers to own their data and have personal financial information easily accessible and transferable to other financial institutions. These changes will allow for more competition, potentially leading to a huge change in the way customers interact with and are marketed to by the financial industry,” she said.
Ms Brockhurst said that the trend towards digital banks would also see neobanks like Xinja and Volt who already have restricted ADI licences increase their market share.
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