CROSS-SELLING FINANCIAL SERVICES – AUSTRALIA

Bank cross-selling less successful than widely believed

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Original article by Roy Morgan
Market Research Update – Page: Online : 8-Oct-18

Australian banks’ over-reliance on cross-selling to boost revenue may have been over-stated, according to the latest "share of wallet" data published in the Roy Morgan Banking & Finance Industry Currency Report. The report found that most major banks’ "share of customer wallet" has declined over the past four years, with National Australia Bank Group slipping 3.7 percentage points to 29.5%, CBA losing 2.6 percentage points to sit at 31%, ANZ Group sliding 1.1 percentage points to 27.7% and Westpac down 0.9 percentage points to 28.3%. While there is no doubt the Royal Commission has exposed serious problems in the selling practices of banks, the share of wallet trend highlights increased competition across a number of product categories. The Banking and Finance Industry Currency Report is compiled using data from more than 250,000 in-depth face-to-face, in-home interviews.

CORPORATES
ROY MORGAN LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC

CBA captured 40pc of Aussie mortgages

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Original article by James Frost
The Australian Financial Review – Page: 17 : 4-Apr-18

Data supplied to the banking royal commission shows that a significant proportion of home loans sold by Aussie Home Loans in 2015 were those offered by its parent company, the Commonwealth Bank of Australia. Up to 39.7 per cent of the mortgages that Aussie Home Loans sold by volume in 2015 were from brands owned by the bank, including Bankwest and Aussie Select. Likewise, 37.5 per cent of mortgage loans sold by value were from CBA-owned brands. A key issue for the royal commission has been whether mortgage brokers are acting in the interests of their customers or the banks.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSSIE HOME LOANS LIMITED, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, BANK OF WESTERN AUSTRALIA LIMITED, AUSSIE SELECT

Banks may have to sell rivals’ products

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Original article by James Eyers
The Australian Financial Review – Page: 3 : 24-Apr-17

Australian Securities & Investments Commission chairman Greg Medcraft says the regulator may use soon-to-be acquired powers to restrict the scope of banks to cross-sell products. He was speaking at a financial technology forum in London. He said it is also possible that banks could be compelled to sell products offered by rivals under its "product intervention" powers.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, INTERNATIONAL MONETARY FUND, AUSTRALIAN BRITISH CHAMBER OF COMMERCE

Greens plan to break up big four banks

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Original article by Joanna Mather, James Thomson
The Australian Financial Review – Page: 7 : 3-Jun-16

Cross-selling of financial products by Australian banks may come under scrutiny after the 2016 federal election. The Australian Greens will push for the major banks to divest their wealth divisions, which provide products and services such as superannuation, financial advice and insurance. Vertical integration in the banking sector would also be examined by a royal commission into banks if the Australian Labor Party wins the election. The Australian Bankers’ Association has urged Labor to rule out supporting the Greens’ policy on vertical integration.

CORPORATES
AUSTRALIAN GREENS, AUSTRALIAN LABOR PARTY, AUSTRALIAN BANKERS’ ASSOCIATION, MORNINGSTAR PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Big four banks have large cross-sell potential

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 23-Feb-15

A Roy Morgan Consumer Single Source Survey has found that the "share of wallet" of each of Australia’s four major bank has increased over the last decade. The ANZ Bank’s share of wallet rose by 5.2 per cent to 28.8 per cent between January 2004 and December 2014, while the Commonwealth Bank of Australia’s share rose by 4.3 per cent to 34.2 per cent. For accounts/deposits, CBA has the highest share of their customers’ wallet with 60.3 per cent (up 7.1 per cent over the last 10 years), followed by Westpac with 55.3 per cent (up three per cent)

CORPORATES
ROY MORGAN RESEARCH LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Banks slow on MySuper switch

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Original article by Andrew White
The Australian – Page: 21 : 11-Nov-14

A new Rainmaker Information study for Industry Super Australia (ISA) shows that retail superannuation funds owned by the major banks have been tardy in moving customers into new low-fee default products. Under the MySuper regulations the switch must occur by mid-2017, but the retail funds have been only half as quick to comply as their rival industry super funds. ISA CEO David Whitely notes this is generating additional fee income for the banks. The submission by his body to the Australian Government’s financial system review also argues that banks should be banned from bundling banking and super products

CORPORATES
INDUSTRY SUPER AUSTRALIA PTY LTD, RAINMAKER INFORMATION SERVICES PTY LTD, FINANCIAL SERVICES COUNCIL, BT FINANCIAL GROUP PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. FAIR WORK COMMISSION

Big four banks facing strong competition selling superannuation to their customers

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 4-Sep-14

A Roy Morgan Research Consumer Single Source survey has found that National Australia Bank had an 18.4 per cent share of its customers’ superannuation wallet in the year to July 2014. This compares with 20.5 per cent in the year to July 2010. The Commonwealth Bank now has a 13.2 per cent share of its customers’ super wallet, followed by Westpac with 13 per cent. Meanwhile, industry super funds hold around 25 per cent of bank customers’ super wallet, while AMP holds about six per cent

CORPORATES
ROY MORGAN RESEARCH LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AMP LIMITED – ASX AMP