Consumer sentiment towards Australia’s big banks is improving month on month, one industry figurehead has claimed.
Speaking to The Adviser, RFi director Alan Shields said the majors’ consumer sentiment took a beating at the end of last year after the big four all decided to move out of cycle with the RBA.
But nine months of rate stability combined with the ongoing price war was starting to push consumers back into the arms of the big banks.
“At the end of last year, there were a lot of reasons to dislike the majors.
“Wayne Swan was constantly talking about the need for greater competition in the mortgage space and the need for a fifth pillar, which consequently caused the big banks to take a step backwards in terms of consumer sentiment,” Mr Shields said.
However in the last few months the majors have managed to improve the way they are perceived by consumers, according to Mr Shields.
“Now when we ask consumers who they would take out a mortgage with, more people are saying they would use the major banks,” he said.
This positive sentiment has been reflected in the latest data from the Australian Prudential Regulation Authority.
As per the APRA data, the combined market share of the big four is now 82.9 per cent – up from 73.9 per cent recorded in July 2007.