Introduction
Australian retail deposits customers remain the key focus for all financial services (FS) providers. However, given the increasing competition within this space, FS providers need to understand each of the consumer segments and devise appropriate strategies to achieve their long-term objectives. This report assesses consumer attitudes towards transaction and savings accounts in Australia.
Scope
*Assesses the current state of Australian deposit consumers
*Investigates consumer attitudes in using their deposit products
*Analyzes switching factors and the underlying reasons to switch products
*Suggests some opportunities in targeting specific consumer segments
Highlights
In the context of Australian FS providers, the importance of a segmented-strategy approach is becoming apparent, allowing as it does FS providers to identify and target the most attractive segments to achieve their goals as competition in retail deposits intensifies.
Understanding needs among different consumer segments are crucial. For example, Gen Ys are twice as receptive as Gen Xs to special offers on deposit products and they rank fees and interest rates higher than any other age group.
This report provides actionable insights, such as targeting younger generations and using alternative communication channels to integrate within consumer lifestyles, and also provides lessons on product design from overseas.
Reasons to Purchase
*Understand the current mindset of Australian deposit consumers
*Identify the main factors to attract specific consumer segments in retail deposits
*Provide actionable insights on how to approach Australia deposit consumers after the global economic crisis
Table of Contents :
Overview 1
Catalyst 1
Summary 1
Executive Summary 2
Understanding consumer behavior across the four stages of the product cycle 2
Consumers are looking for independent sources of information 2
Online applications for savings accounts are increasing 2
Internet banking has become a common way of banking 3
While a minority have switched, it does not mean that the majority are happy with their transaction provider 3
Targeting specific consumer deposit segments 4
Youth banking programs serve to acquire new customers at an early stage of their banking 4
Reaching deposit customers through social media 5
Premium transaction accounts may reach niche consumer segments in Australia 5
TABLE OF CONTENTS 6
Table of figures 7
Table of tables 8
Understanding Australian Deposit Consumers 9
The shape of Australian retail deposits 9
Both the savings and transaction accounts markets are extremely competitive 9
Changes in regulations drive consumers behavior 9
Big banks claimed the majority of deposits in the last 12 months 10
In the past year, 87% of household savings went to the four major banks 10
The major banks act as main financial institutions for 64% of Australians 10
FS providers in Australia need to identify and target the most attractive segments 11
The importance of a segmentation strategy in a mature market cannot be underestimated 11
New products launched in the last 12 months are focusing on specific consumer segments 12
Four important segments based on Australian demographics 12
Consumer Insights: Understanding the Four Stages of the Product Lifecycle 13
Research: a process of narrowing down choices based on consumers needs 14
Consumers are looking for independent sources of information 14
Different consumer segments have different reasons to choose their provider 17
Gen Ys are price-sensitive, and look for independent opinions and special offers 18
Gen Xs are likely to go with their mortgage provider or take product bundles for a transaction account 18
Baby Boomers value convenient banking and good service 18
Retirees look for service, stability and security 18
Apply: a step to win customers 19
Branch is still a dominant channel through which to apply for a transaction account 19
Online applications for savings accounts are increasing 20
Consumers are still facing low level of experience in applying online deposit products 21
Use: a process for consumers to test the products/services 23
Electronic transactions are dominating consumers banking 23
Internet banking has become commonplace 24
Online savings accounts are popular among consumers 25
Most Australian consumers hold both their transaction and savings account with one provider 25
Gen Xs represent more disciplined savers than any other group 26
Switch: a result of a mismatch between product/services and their users 26
While a minority have switched, it does not mean the majority are happy with their transaction provider 26
ANZ claimed the most number of consumers who have switched 28
Other than fees, convenience factors are clear drivers of consumer switching 29
Good service is the key factor to retaining savings account customers 30
Targeting Specific Consumer Deposit Segments 31
Youth banking programs serve to acquire new customers at an early stage of their banking 31
Acquiring custom by integrating with early stages of consumers lifestyles is a sound strategy 31
CBA has 41% penetration of customers at an early age (18-30 years old) 31
CBA customers as a whole join the bank at a younger age than any other banks consumers in Australia 31
Case study: CBAs youth banking programs 32
School banking programs 32
Engaging young generations through online mini-sites and merchandize 33
Premium transaction accounts may reach niche consumer segments in Australia 34
The trend of premium transaction accounts has seen growth in the UK 34
Premium transaction accounts target the young and wealthy segment 35
Premium transaction accounts represent a new opportunity in the Australian retail deposit market 37
Reaching deposit customers through social media 37
Gen Ys look for opinions from someone on deposit products, but not from a bank 37
Community involvement needs to include social media 37
APPENDIX 39
Definitions 54
Bonus savings account 54
Cash management account (CMA) 54
Direct charging fee 54
Main financial institution (MFI) 54
Mortgage Offset Account 54
Online savings account 54
Retail deposits 54
Methodology 54
Further reading 55
Ask the analyst 55
Datamonitor consulting 55
Disclaimer 55
For more information please visit :
http://www.aarkstore.com/reports/Australian-Consumer-Deposits-2010-62636.html
Australian Consumer Deposits 2010 - Market Research Report On Aarkstore Enterprise