40 percent of Aussie borrowers still with their childhood bank

40 percent of Aussie borrowers still with their childhood bank
40 percent of Aussie borrowers still with their childhood bank

A survey has found nearly 40 percent of respondents have kept banking with the institution they have been a member of since childhood. 

The survey of 2,026 Australians from Finder.com.au discovered almost one in four (22 percent) said they were satisfied with their existing bank, while one in ten (9 percent) said it hadn’t occurred to them to switch, and a further 9 percent ‘couldn’t be bothered’ to switch.

Bessie Hassan, Finder.com.au money expert said this equates to over 7 million Australians who’ve never switched banks.

“One of the biggest barriers to switching is the perceived effort involved, but it’s not rocket science, and switching to a new bank could definitely be worth your while," she said.

“The research shows we’re loyal to the banks but they may not necessarily repay that loyalty.

“You can bank on the fact that there’s a better rate out there than the one on the account your parents set up for you when you were five.

“A Dollarmite account was a rite of passage for many Aussie kids and the beloved yellow bank book is a source of nostalgia. But it’s also lucrative for the banks who know that if they can get your business as a kid, chances are you’ll stick around as an adult,” she says.

The survey found 42 percent of women are still with the same bank they signed up with as a child, compared to just 37 percent of men.

About 13 percent of men said they no longer trusted their previous bank, compared to only 8 percent of women.

Almost one in ten (10 percent) women admit they could not be bothered to change banks, compared to only 8 percent of men. 

Generation breakdown

Generation Y are most likely to still be with the same bank, a whopping 58 percent still bank with the bank they signed up with as a child.

More than one in four Baby Boomers (27 percent) are still with the same bank.

Tags: 
Finance Banking

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