Fintechs slam CBA alerts as misleading

Original article by James Eyers
The Australian Financial Review – Page: 15 & 20 : 18-Nov-19

Raiz Invest has criticised the Commonwealth Bank of Australia for warning customers about the security risks associated with the use of fintech apps. CBA customers who use the Raiz app recently received a warning that their NetBank account had been compromised, and cautioned against sharing account log-in details with third parties. Raiz CEO George Lucas says the CBA alert was misleading and may even constitute an abuse of market power. Fintech Australia’s Rebecca Schot-Guppy says CBA’s actions are concerning given that the open banking regime is slated to begin in early 2020.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RAIZ INVEST LIMITED – ASX RZI, FINTECH AUSTRALIA PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, ZIP CO LIMITED – ASX Z1P, AMP LIMITED – ASX AMP, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Mobile banking apps linked to high customer satisfaction

Original article by Roy Morgan
Market Research Update – Page: Online : 21-Oct-19

New research by Roy Morgan shows that satisfaction levels for mobile banking users was 90.3% in September 2019, ahead of interactions via internet banking (89.0%), branches (86.4%), a personal banker/advisor (78.9%) and phone banking (80.4%). Mobile banking is now used by 45.9% of Australians aged 14+ in an average four-week period, compared to only 20.6% who use branches. Customers of all four of the major banks have higher satisfaction with mobile banking compared to those using branches. Internet banking users also have higher satisfaction than those using branches. These are some of the latest findings from Roy Morgan’s ‘Service Satisfaction Report-Consumer Banking Market September 2019’. This report is based on data collected from Roy Morgan’s Single Source survey, which involves in-depth interviews conducted face-to-face with over 50,000 consumers each year in their homes. The results presented here are from interviews conducted in the six months to September 2019.

CORPORATES
ROY MORGAN LIMITED

Clock ticks on digital bank’s goals

Original article by Joyce Moullakis
The Australian – Page: 21 : 9-May-19

Digital bank 86400 will seek to attract new shareholders via a capital raising that will be managed by Morgan Stanley. 86400 could potentially raise up to $250m, but CEO Robert Bell says the final amount will depend on demand from local and international investors. The company has applied for a full banking licence, and Bell expects this to be granted shortly. Rival digital bank Judo recently gained a full banking licence.

CORPORATES
86400 PTY LTD, JUDO BANK PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, CUSCAL, MACQUARIE GROUP LIMITED – ASX MQG, ATOM BANK, METRO BANK, VOLT BANK LIMITED, XINJA BANK LIMITED, TEMENOS, AMP LIMITED – ASX AMP

ING gains as customers flee the big banks

Original article by James Eyers
The Australian Financial Review – Page: 17 : 14-Mar-19

The number of customers for whom ING Australia is their main bank has risen by 57 per cent in the last year, to 645,000. This compares with just 100,000 customers in 2013. ING Australia CEO Uday Sareen says positive advocacy from the digital-only bank’s existing customers has been a major of its recent growth, which has also coincided with the Hayne royal commission. ING Australia booked a statutory net profit of $401m in 2018, an increase of 15 per cent, while deposits grew by nine per cent to $43.4bn.

CORPORATES
ING AUSTRALIA HOLDINGS LIMITED, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, BANK OF QUEENSLAND LIMITED – ASX BOQ, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, APPLE PAY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC

Neobanks set for vault into future

Original article by Richard Gluyas
The Australian – Page: 15 & 16 : 11-Jan-19

Australia’s traditional banks are set to face growing competition from purely digital banks. The majority of banks that have entered the domestic market in the last decade have been foreign owned, but local ‘neobanks’ are changing the status quo. Volt will seek a full banking licence after gaining a restricted licence in May 2018, and the digital bank aims to have a $3m mortgage loan book within three years. Xinja also recently secured a restricted licence, while 86400 is set for a public launch within three months.

CORPORATES
VOLT BANK LIMITED, XINJA BANK LIMITED, 86400 PTY LTD, CUSCAL, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, UP, MONZO, REVOLUT, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BARCLAYS BANK PLC

The way Australians bank

Original article by Roy Morgan
Market Research Update – Page: Online : 7-May-18

A Roy Morgan Single Source survey shows that ATMs remain the most used banking channel in Australia, with 83.4% of Australians aged 14+ using an ATM in the year to March (down 0.8%). Internet Banking is the second most used banking channel, with 54.2% using Internet Banking in the last 12 months (down 2.0%). The rapid increase in the use of mobile banking, with its higher satisfaction levels compared to branches, appears to have affected the number who use it compared to visiting a branch. Mobile banking usage is at 46.5% (up 3.1%), beating visiting a branch at 45.1% (down 3.5%). Phone Banking also saw an increase on 2017, with 24.1% of Australians aged 14+ using Phone Banking (up 1.6%).

CORPORATES
ROY MORGAN LIMITED

Bank advocacy highest among App users

Original article by Roy Morgan
Market Research Update – Page: Online : 1-Mar-18

A Roy Morgan Single Source survey has found that bank customers using an App on a mobile phone or tablet to deal with their bank are more likely to recommend them to a friend or colleague compared to those accessing their bank using other channels. In the 12 months to January 2018, 68.7% of customers who dealt with their bank using an App on a mobile phone or tablet said they were highly likely to recommend their bank to others. This is based on them scoring an 8, 9 or 10 on a possible 10-point likelihood scale. This level of advocacy is well above that of the more traditional method of dealing with banks – the branches – with 64.7% being high advocates. Internet banking using a website is currently the most common method for dealing with banks, but it is losing some ground to the use of Apps on mobile phones or tablets.

CORPORATES
ROY MORGAN LIMITED

Nearly three and a half million increase in mobile bank users since 2013

Original article by Roy Morgan Research
Market Research Update – Page: Online : 23-Aug-17

A Roy Morgan Single Source survey has found that 8.3 million Australians aged 14+ used mobile banking in an average four-week period in the six months to June 2017, compared with 4.83 million in the six months to June 2013. The survey also shows that the proportion of Australians who use mobile banking in an average four weeks has risen from 25.3% to 41.5% over this period, while the proportion who use a bank branch has fallen from 35.8% to 26.5%. Meanwhile, 62.8% of millennials now use mobile banking, compared to only 21.5% using branches. They now number 3.17 million users or 38.2% of the total market. This is well above generation X with 2.03 million or 24.5% of total mobile banking users.

CORPORATES
ROY MORGAN RESEARCH LIMITED

are still dragging satisfaction levels down

Original article by Roy Morgan Research
Market Research Update – Page: online : 5-Jan-17

A Roy Morgan Single Source survey has found that banking using an app on a mobile phone or tablet is now more popular than using branches, with 38.8% of Australians using it in an average four-week period, compared with only 28.2% for branches. Satisfaction is a major driver of this trend with 90.7% satisfaction with mobile banking among the big four, compared to 84.8% satisfaction with branches. With a 93.8% satisfaction rate among its mobile banking customers, the CBA has the highest satisfaction of the 10 major banks and has improved by 2.2% points over the last 12 months. Bendigo Bank is a close second with 93.4%, followed by ING Direct on 92.7%. The remainder of the big four banks were well below this top group with ANZ on 88.4%, NAB on 88.0% and Westpac on 87.7%.

CORPORATES
ROY MORGAN RESEARCH LIMITED, BANK OF QUEENSLAND LIMITED – ASX BOQ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, GREATER BANK LIMITED, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, ING DIRECT, SUNCORP BANK, ST GEORGE BANK LIMITED, BANK OF WESTERN AUSTRALIA LIMITED

Bank branches under threat

Original article by Sally Rose
The Australian Financial Review – Page: 16 : 14-Dec-15

Gerard du Toit of Bain & Company says Australian banks may close 10-30 per cent of their bank branches within five years, as the trend toward mobile banking gathers pace. He notes that the number of visits to branches fell by nearly 10 per cent year-on-year in the September 2015 quarter. However, du Toit cautions banks against shifting their focus to digital banking before it is fully accepted by customers, particularly those in older age demographics.

CORPORATES
BAIN AND COMPANY, ABN AMRO BANK NV, FACEBOOK INCORPORATED