DUBLIN, Ireland--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/research/b9ef30/trends_in_high_int)
has announced the addition of the "Trends in High Interest Savings
Accounts in Australia" report to their offering.
The high interest deposit market is undergoing rapid change,
driven by competition and technology. Online savings products have
allowed a range of new players to enter the market, and have forced
interest rates upward. The currently turbulent financial markets have
sparked renewed interest in deposits, and so the high interest deposit
market is set to continue being very competitive.
Scope
- Includes a comprehensive overview of the Australian high
interest deposit market.
- Draws upon a large consumer survey of Australian savings account
holders.
- Discusses traditional savings accounts, online savings accounts,
CMAs, CMTs, term deposits and offset accounts.
- Includes market overview, analysis of consumer behaviour,
competitor dynamics and future developments.
Highlights of this title
Online banking made managing banking business even easier for
consumers, as well as enabling new competitors to enter the market.
Foreign banks, previously hampered by their lack of branch coverage,
could now compete with the major Australian financial institutions.
At the same time that lenders have refocused their efforts to
attract deposit customers and become more risk-averse, consumers have
become more cautious as a response to the uncertain financial outlook.
A shaky stock market has helped shift consumer focus toward deposits.
It is thus clear that both supply and demand for deposit products is
rising.
The new Australian government has pledged to restrict switching
fees for financial products, in a bid to make switching easier for
consumers, to encourage competition in the market. Another potential
legislative change could be a mandate that banks simplify the process
of carrying over direct debits when consumers wish to switch accounts.
Key reasons to purchase this title
- Improve your strategic position using This in-depth analysis of
the Australian high interest savings account market.
- Understand the unique challenges the high interest deposit
market is facing, and benefit from forecasts of future product trends.
- Gain insight into the current mindset of Australian high
interest deposit customers.
Key Topics Covered:
- Market context
- There are many competing products in the high interest deposit
area
- Technology changed the playing field for savings accounts
- Global financial conditions have sparked intensified interest in
deposits
- Customer focus
- Most accountholders choose their provider based on rates
- Accountholders who arrange savings online are younger, better
educated and have a higher income
- BankWest has the most satisfied customers of the major providers
- Competitive dynamics
- Margins are relatively low for deposit products
- Foreign banks and regional banks have grown their share of
household deposits
- CBA is the market leader for high interest savings deposits
- Future focus
- Savings products will continue evolving
- In time savings accounts and transaction accounts will merge
into a single product
- Table of figures
- Table of tables
- Market Context
- Savings accounts have benefited from the increased availability
of banking
- Banking accessibility has increased strongly since the 1980s
- Bank branch numbers declined during the 1990s but have recently
increased slightly
- Technology changed the playing field for savings accounts
- Total Australian bank deposits have grown strongly
- There are many competing products in the high interest deposit
area
- Global financial conditions have sparked intensified interest in
deposits
- Customer Focus
- A broad range of Australians have high interest savings accounts
- Most Australian consumers now hold at least one high interest
savings account
- Close to half of Australian savings accountholders have $5,000
or more in their main account
- Half of all savings accountholders make weekly or monthly
deposits
- More than half of savings accountholders have no specific
purpose for saving
- Interest rate drives provider choice when choosing a high
interest savings account
- Most accountholders choose their provider based on rates
- Bank advisors and the internet are the most common sources of
information
- Fees and rates are the most important considerations when
switching account
- Online high interest savings accountholders have distinctive
characteristics
- Online arranging savings accountholders are younger, better
educated and have a higher income
- Accountholders who arrange their savings online are more
financially savvy
- Savings accountholders with online only access are more active
customers
- Satisfaction with high interest savings account providers varies
- BankWest has the most satisfied customers of the major providers
- Satisfaction metrics are especially important for high interest
savings account providers
- Competitive Dynamics
- Providers mainly compete on the basis of rate and accessibility
of funds
- Interest rates have many variations in the market
- Interest rates vary wildly between deposit products
- Some products have fixed or split interest rates
- Introductory rates are used as a tool for customer acquisition
- Many products offer higher interest rates if certain conditions
have been fulfilled
- Accessibility of funds differs between products
- Competition has led to low margins in the Australian market
- Margins are relatively low for deposit products
- Online accounts have revolutionized the market for deposits
- New entrants have challenged the big Australian banks
- The five largest Australian banks hold 78% of household deposits
- Foreign and regional banks have grown their share of household
deposits
- CBA is the market leader for high interest savings deposits
- Future Focus
- Savings products will continue evolving
- Interest rates offered are set to stay high and margins low
- Product terms will continue to become more relaxed
- Online accounts will become more prevalent
- Product bundling has important implications for product
development
- In time the savings account and the transaction account will
merge into one product
- There are signs that savings accounts and transaction accounts
will merge into a single product
- The convergence of account types will have profound effects on
the Australian deposit market
- Government initiatives will drive new product innovation
- The Australian government has committed to making financial
product switching easier
- The recently proposed First Home Saver Account scheme will
create a new product category
For more information visit
http://www.researchandmarkets.com/research/b9ef30/trends_in_high_int
Source: Datamonitor
Research and Markets
Laura Wood, Senior Manager
Fax from USA: 646-607-1907
Fax from rest of the world: +353-1-481-1716
press@researchandmarkets.com
Copyright Business Wire 2008
