Australians continue to endure higher interest rates and sub standard service from the major banks despite alternatives being offered by non-bank lenders.
In the past few weeks we have seen various sets of data from the likes of Roy Morgan, Mozo, and others all supporting the view that customers of the big four banks are less satisfied with their financial institutions than those with non-banks. So, why don’t more people switch?
Banks prey on our loyalty and use clever marketing to encourage us to bundle products with them, to reduce the chances of us leaving. And it works! Do we truly believe that it would be difficult to switch; or are we simply too lazy to find out?
“People open traditional bank transaction accounts all the time with the majors without giving it much thought, however when taking out a home loan, it simply doesn’t make sense.” says MyRate Managing Director Kevin Sherman. “When you consider www.MyRate.com.au is about 1% cheaper than the advertised standard variable rate of the big 4 banks, consumers with those lenders could end up paying as much as $100,000 more over the life of a standard home loan; in addition to receiving poor service.”
Customer ratings on financial comparison site Mozo.com.au reveal that community banks and non-bank lenders are outperforming the bigger banks in every way. Mozo has given power to the people, by allowing Australians to compare all aspects of home loan lenders and their products including; price, trust and customer service. “With our recent People’s Choice awards, the smaller-sized lenders, including direct lenders, community banks and mutuals have out-rated the big banks on all measures of customer satisfaction,” said Rohan Gamble, founder of Mozo.
By way of example, customers have awarded MyRate.com.au with an overall rating of 9.6 out of 10 over the last twelve months. The average rating for the big four banks is 6.62.
An independent customer satisfaction survey conducted by Aida Sales and Marketing revealed that 96% of MyRate customers that settled a loan over the last twelve months are happy with MyRate and their products.
So, we all know it; we’re saying it on review sites and researchers affirm it with their surveys. Too many Australians are putting up with bad deals from the banks.
When it comes to a financial decision as big as a home loan, we should be comparing lenders on customer service, reputation, price, and transparency of fees. Not their expensive advertising campaigns, promising ‘friendlier banking’ with nostalgia, talking animals and flowerpot men. Wake up Australia; we have choices.