Australian consumers are significantly more likely to trust non-bank financial service providers than traditional banks, according to an Ernst & Young survey.
The EY 2016 Global Consumer Banking Survey found that 44 per cent of non-bank customers said they have complete trust in their provider, compared to just 36 per cent of traditional bank customers.
The survey found 27 per cent of respondents said they wouldn’t hesitate to switch their primary financial service provider if they found an alternative with a better digital experience or offer.
EY banking customer leader for Oceania, Rob Colwell, said, “Consumers do broadly trust Australian banks to look after their money securely, however only 20 per cent have complete trust that they will give them unbiased advice that puts their interests first.
“This is consistent with global trends, where consumers were more likely to trust non-traditional competitors, such as digital-only banks, fintechs and supermarkets offering banking services to provide transparency of fees, unbiased advice and product recommendations in the best interest of the customer.”
Fifty-seven per cent of customers said they value the ability to research online, but still want to visit a branch or call a real person when taking up a new product or getting advice, the survey said.
It also found that, after more attractive rates and fees, the next four top reasons Australians would consider switching to a non-bank provider all related to customer experience attributes: better online experience and functionality, access to different products and services, ease in setting up an account and more innovative products.
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