Banks Lose To Hair Gel In Loyalty Stakes

The Age

Saturday November 6, 2004

Peter Weekes

AUSTRALIANS are more committed to their beer and morning cereal than they are about where they put their money, with only one in five people believing their bank offers good service.

So it's not surprising that Australians are 50 per cent more likely to change their bank than their toothpaste or hair gel, a survey of 2000 bank customers by BankWest found.

And if further proof of Australians' antipathy towards banks is needed, the survey found that a mere 20 per cent were seriously committed to their bank, with a further 8 per cent sticking with it simply out of habit.

This is good news for BankWest, which this weekend will complete its national roll-out of a new internet/telephone savings account, as it means 71 per cent of customers from the big four banks are up for grabs.

BankWest chief executive Chris Whitehead likens the bank's arrival on the east coast to that of Virgin Blue in the nation's sky. He said Virgin's arrival smashed the duopoly of Qantas and Ansett and brought real competition and difference to the aviation industry, with passengers being the winners.

In less good news for BankWest, which is relying on phone and internet banking for its eastward expansion, the survey found 70 per cent of people disagreed with the proposition that branches were not important.

© 2004 The Age

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