Independent research conducted by Roy Morgan shows people are itching to switch from their current bank if red tape is eliminated but our Gold Coast Lending Manager David McGlynn says that it is already easy to switch.
I read the findings of the research carried out for ABACUS which said that almost 50% of people would be prepared to dump their banks if red tape is eliminated making it simpler to switch accounts. The Roy Morgan research found one in five Australians are likely to change financial institutions in the next year, rising to almost 50% of people if the paperwork and administrative effort was substantially reduced.
The Federal Government’s “tick and flick” account switching reforms starting in July will mean Australians can dump their current financial institution more easily than ever before but many people are already realising that it is not hard to switch NOW and saving thousands of dollars on their loan.
To the end of April 2012, the number of people refinancing their home loan with The Greater this financial year is up 24.6% on the same period last year.
The Greater’s Fast Refi Service cuts the time taken to settle refinanced loans to just a couple of days once a loan is approved and our Managers help people do the minimal paperwork required. In many cases people don’t even have to contact their existing bank to switch.
The Roy Morgan research found:
• 21% of people are likely to change their main financial institution in the next 12 months, with interest rates not being competitive (35%), and high or unfair fees (30%) listed as the main reasons for the change.
• 49% of people would be likely to change their main financial institution in the next 12 months if the administration process of moving finances, direct debits and scheduled payments could be handled automatically by their new financial institution.
• The most frequently cited factors considered important when considering changing banking provider were the costs of fees and charges (92%), competitiveness of interest rates (78%), and the convenience of branches and ATMs (75%).
At The Greater, we recently cut home loan rates, which should provide an even greater incentive for people to switch (pun intended). The Greater cut its standard variable (Getaways) home loan to 6.60% p.a. and its basic variable (Great Rate) home loan to 6.24% p.a. Last week we cut our 3 year fixed packaged (Ultimate) home loan to just 5.79% p.a and the three year basic (Great Rate) home loan to 5.84% p.a. We also have low fees and our customers have access to 66 branches and almost 4,000 ATMs via our own ATMs.