Australians keep put with their banks — and lots of say it’s costing them, Kraken analysis finds | UNW

Australians are loyal bank customers — often staying put for years — but new research suggests that loyalty is doing little for their wallets.

A survey of 1000 Australians by cryptocurrency exchange Kraken found almost two-thirds of respondents have stayed with their current bank for at least five years. Many have remained customers for far longer.

Yet 64 per cent said their bank did not reward that loyalty through better interest rates, benefits or everyday spending incentives.

“Old habits die hard, and for many the thought of switching still feels risky or inconvenient,” said Jonathon Miller, Kraken’s managing director in Australia.

“The banking landscape here has been concentrated for a long time, and that familiarity keeps people in place.”

That apathy can come at a cost. Four in 10 respondents said their bank’s returns failed to keep up with inflation, meaning their savings were going backwards in real terms.

The findings come after a period of higher interest rates, which increased pressure on borrowers but also helped lift margins across the banking sector.

Finder figures released in December show generation Z is the most likely to move banks.

Eighteen per cent said they had switched savings accounts in the previous six months, compared with 7 per cent of gen X and 4 per cent of baby boomers.

The same pattern is showing up in other household bills, with Finder data suggesting gen Z is also more likely to shop around for insurance and energy providers.

Kraken’s research points to a change in what consumers expect from financial providers.

Eighty-eight per cent of respondents said they wanted access to products that generate passive income or yield to help preserve wealth, rather than leaving cash in low-return accounts.

As fintech platforms, digital wallets and non-bank providers expand, Mr Miller said Australians are becoming more aware of banking alternatives.

Almost 90 per cent of respondents said they would consider switching providers if they could earn competitive rewards on everyday spending, such as transactions, bill payments or card use.

“The cost of switching is coming down and it pays to look around,” Mr Miller said.