Powered by MOMENTUM MEDIA
subscribe to our newsletter

ABA survey finds consumer banking trends

A report released by the Australian Bankers’ Association has revealed consumers are using their bank transaction accounts more than ever but are paying the lowest average fees to do so in six years.

The annual report, Fees for Banking Services, showed that over the past six years, fees from transaction accounts have halved while transaction volumes have increased by 50 per cent.

Advertisement
Advertisement

PROMOTED CONTENT


“For virtually all bank customers their most regular banking experience is with their transaction account,” ABA chief executive Steven Münchenberg said.

“In 2014 [alone], the number of transactions increased by eight per cent but the total fees on these accounts did not change.”

The report shows that total fees paid by households and businesses for banking services increased by 2.8 per cent to $12 billion in 2014.

“The growth in total fees for banking services remains low, especially when compared to the growth in banking activity,” Mr Münchenberg said.

He noted fees as a proportion of bank assets, income and profit are at a record low.

“Additionally, the price of financial services over the past year has not increased as much as other household expenditures such as utilities, education and health,” Mr Münchenberg said.

According to the report, households paid $4.2 billion in fees for banking services in 2014 – an increase of 1.5 per cent but well below the peak levels of five years ago.

“The average weekly fees paid by households was $9. This is consistent with what we have seen over the past four years and much lower than the $12 we were paying in 2008,” Mr Münchenberg said.

Furthermore, the report also showed low growth in fees paid by businesses for banking services, as well as a drop in bank fees on business deposit accounts.

“Businesses paid $7.8 billion in fees in 2014, an increase of 3.5 per cent,” Mr Münchenberg noted. “This is largely attributed to the growth in merchant fees as a result of the increased volume of transactions over the year.”

ABA survey finds consumer banking trends
mortgagebusiness

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Tickets are on sale now. Work smarter, not harder, this year.

Latest News

True Savings, a new online brokerage headed by former CBA executive Pete Steel, has entered the Australian mortgage market. ...

Pre-registrations have opened for Citi’s upcoming buy now, pay later offering, Spot., which will launch in October. ...

New Zealand’s central bank is primed to further tighten mortgage lending standards, following concerns with a rise in high-LVR and high-DT...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.