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The major banks have been the big winners in the extraordinary growth story of Australia’s financial services market.
Roy Morgan Research has compared the state of today’s market, which is the focus of the ongoing Financial System Inquiry, with the market from 1997, when the previous inquiry was held.
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The State of the Nation report found the financial services market has grown 10 times faster than the population during the past 17 years.
Superannuation and lending have been the principal drivers of growth, with lending growing 324 per cent since the last inquiry.
The big four banks have increased their market strength, despite the 1997 inquiry predicting that new entrants and shifting market dynamics would result in more competitive conditions.
Customer satisfaction with the majors has “skyrocketed” in the past 17 years, which Roy Morgan said was one of the biggest changes since 1997.
Fewer customers are now interested in switching lenders, although they still feel little sense of loyalty towards their bank.
The report also found that the over-50s are an increasingly dominant force. They control 55.9 per cent of the market despite representing just 39.5 per cent of the population aged 14 and above.
