Trust, reputation and operational risk are areas of focus for Australian banks following a series of scandals. At the same time, advancements in technology are driving changes in customer attitudes, preference and behaviours that have the potential to upend Australia’s retail-banking landscape.
The risk for banks is that they will give short shrift to changing attitudes toward digital banking as they focus on the restoration of their reputations and macroeconomic headwinds.
Australian banks are in the unenviable position of having to fight on several fronts.
Traditional banks, with substantial investments in physical assets, need to think urgently about the implications of these changes and the resulting uncertainty created by them. They must consider both customers and shareholders as they set a strategy that allows for agile responses to unexpected developments. This vision needs to account for an effective value proposition in an increasingly digital world, the role of physical assets, the evolution of marketing and the impact of Open Banking on competition.
In support of the critical discussions that are necessary across all levels of the bank, Novantas is pleased to issue its latest Australian Shopper Survey to show how Australian retail banking is changing and to help bankers set priorities for the coming years. The survey is based on interviews with nearly 2,500 financial decision makers from Australian households, covering their attitudes and perceptions of Australian banks and how they decide which bank deserves their business. The Australian edition of this research is modelled closely after studies that Novantas conducts in the U.S., Canada and the U.K., and builds on research conducted in Australia annually since 2014.
The report focuses on retail-customer acquisition and the formation of primary relationships, both of which are key battlegrounds in the current environment. It examines changing customer preferences, the rise of ING and new challenges for traditional players, as well as long-term implications for Australian retail banking at large.
Research Manager, Chicago
Managing Director, Sydney