Tech-savvy customers favouring regional banks

Tech-savvy customers favouring regional banks

The major Australian banks are falling behind the smaller and regional banks when it comes to capturing early adopters of technology, according to a new survey by Roy Morgan.


A survey of 50,000 Australians by researcher Roy Morgan found the big four banks have close to the population average of 'technology early adopter' customers.

Less than one in five (18.7 per cent) of Australians can be classified as 'technology early adopters', the researcher said.

"Early Adopters are always first to purchase and use new technologies and generally set the trend for the broader market to follow, making it crucial for banks to understand how they are performing among this group," Roy Morgan said.

The six banks with the highest proportion of early adopters among their customer base are all smaller or regional banks, according to the research.

"Teachers Mutual Bank leads with 29.2 per cent of its customers being from this group, which is 56 per cent higher than the population average of 18.7 per cent," said the researcher.

CBA and ANZ are 7 per cent above average when it comes to early adopters of technology, while Westpac is 8 per cent above average. NAB is 3 per cent below average.

"Among the other major banks there are a number of below average performers, with Bendigo Bank well below average (33 per cent below), Heritage Bank (23 per cent below) and Bank SA (13 per cent below)," said Roy Morgan.

Roy Morgan industry communications director Norman Morris said that while the smaller banks are leading in attracting tech-savvy customers, they are likely to face challenges from better-resourced major banks and fintech 'disrupters'.

"The success of all players in financial services will not only depend on their ability to attract early adopters but will depend ultimately on moving to the ‘mass market’ stage and ‘market maturity’, where the majority of the population have transitioned to this new era in banking," Mr Morris said.

Read more:

Don't ignore ESG, fund managers warned

Wealth at the heart of ANZ restructure

Mercer acquires online compliance firm

CBA posts $2.3bn profit for third quarter

ASIC levy set to jump by 150%

 

Tech-savvy customers favouring regional banks
investordaily image
ID logo
promoted stories

Appointments

investordaily image

APIR Systems hires client development GM

Staff Reporter

investordaily image

AMP names incoming chief risk officer

Jessica Yun

investordaily image

Antares Equities hires new director

Staff Reporter

Analysis

investordaily image

Warning lights flashing on Aussie equities

Roy Maslen

investordaily image

What’s in store for the economy in 2018?

Frank Uhlenbruch

ST Wong

Busting common passive investing myths

ST Wong