If banks hold back on RBA cuts more consumers should switch
CHOICE says the big banks’ delay and apparent unwillingness to pass on the full cut to the cash rate highlights why consumers should consider the benefits of switching to smaller lenders.
The people’s watchdog says if any of the big four fail to reduce their rates, it will have more to do with lack of competition than any increases in their cost of overseas funds.
CHOICE says the initiative of some smaller banks to pass on the cut, in full, should spur consumers to check out more financial institutions than just the big four.
This week, CHOICE released its latest bank satisfaction survey which shows online banks, regional banks and credit unions are significantly more popular with CHOICE members than the big banks.
The survey also showed that while many customers remain with the majors despite widespread dissatisfaction, half of those who had switched transaction accounts found it easy to do so - even before reforms due next July to simplify the paperwork.
“We join the call from others including the Treasurer, retailers, the real estate industry, some other banks and most consumers for the big four to do some hard listening and put their customers first,” says CHOICE director of campaigns and communications, Christopher Zinn.
“If they fail to pass on cuts in full they will be giving even more consumers reason to consider switching, which is one message the big four can’t ignore.”
Read more on CHOICE’s Bank Satisfaction Survey at: www.choice.com.au/reviews-and-tests/money/banking/saving-money/bank-satisfaction-survey-2011
- Christopher Zinn: CHOICE, director of campaigns and communications 0425 296 442