The Commonwealth Bank’s large increase in loan interest rates this week has many people saying that they’ll switch banks. However, a new poll suggests that only a tiny fraction of us will ever get around to doing so.
Picture by Eva The Weaver
As part of its Better Banking campaign to simplify bank switching and reduce unnecessary fees, consumer advocate Choice commissioned a poll asking people if they’d considered switching banks in the last two years. In the survey of 1,203 people, a massive 79% hadn’t even considered switching, and only 8% had actually done so.
Unsurprisingly, too much paperwork and hassle was the most common reason people who had considered switching didn’t get around to it, closely followed by not being able to research the best deal and a general belief that switching won’t make much difference. Despite occasional minor regulatory reforms, bank switching is still a major hassle. Choice’s campaign aims to see those rules simplified, though with the current anger over interest rates that element may not receive as much attention.
Switched financial institution recently and found it worth the effort? Tell us your story in the comments.