Research and Markets has announced the addition of the "Fee-Based Banking in Australia: Sizing the Market Opportunity" report to their offering.
The Australian retail banking market is going through a period of transition, and fewer consumers are willing to pay for everyday banking services. However, there is an opportunity in offering packaged accounts. This report sizes the market opportunity, analyzes the benefits to providers of fee-based accounts, and explores how to develop these opportunities.
Features and benefits
- Discover how big the fee based packaged account market in the Australia is, and how big it can realistically expect to grow.
- Understand how the Australian marketed is segmented with respect to users and non-users of fee-based transaction accounts.
- Learn what strategies will provide most effective in increasing packaged account uptake, loyalty, and profitability for each segment.
- Overcome customer inertia by recognizing the reasons for not holding a packaged account.
- Benefits of moving towards a fee-based packaged account strategy include higher revenue generation, greater customer retention and acquisition. It is possible to segment consumers based on their use of and attitudes toward packaged accounts, and to create strategies for each segment aimed at encouraging the migration from free to fee-based banking.
- Datamonitor has identified seven distinct consumer segments based on usage of and attitudes toward packaged accounts. Each segment displays different characteristics, and banks consequently need to employ different strategies to reach out to each group.
- Packaged accounts have realistic potential to make up 8.8% of the overall transaction account market. To maximize revenue generation, providers must demonstrate the value consumers can derive from such accounts and emphasize the convenience afforded by fee-paying accounts.
Your key questions answered
- How many fee paying transaction accounts are there in Australia and what is their value to providers?
- How big a share of the market will packaged transaction accounts reach?
- What account features appeal most to different consumer segments?
- What differentiates fee-paying from free banking consumers in terms of their behaviour and attitudes?
- What strategies can organization employ to maximize the acquisition of packaged account customers?
MAXIMIZING THE OPPORTUNITIES
- The present state of the fee-based transaction account market
- The fee-based transaction account market is worth A$399.9.0m
- The packaged account market can expect to grow to 8.8% of the market
- Cost-minimization and customer value maximization are key elements of a fee-free strategy
- Providers pursuing a fee-free strategy should encourage usage of low cost channels
- ADIs pursuing a fee-free strategy must transform low value customers into high value customers
- Offering packaged accounts will provide ADIs with a range of benefits
- Packaged accounts enable greater differentiation from rivals
- Paid-for account customers are more engaged with their provider
- Packaged account providers benefit from increased deposit inflows
- Standard fees are dying, but there is life yet in packaged accounts
- Added value needs to be offered to justify charging a fee for current accounts
- The packaged account market is highly concentrated, with only a few players offering deposit-led accounts
- Mortgage-based packaged accounts allow providers to offer a lower SVR
- Providers need to actively market packaged accounts
- Packaged account providers should address customers' demand for convenience when promoting packaged accounts
- Banks' priority must be to address the value concerns over packaged accounts
- Providers must employ distinct strategies for each consumer segment
- Packaged account holders are a lucrative but demanding segment
- Providers need to offer investment advice
- Packaged account holders will appreciate an enhanced phone service
- Premium account consumers demand preferential treatment
- Persuadables appreciate tools that allow them to manage their finances
- Travel products can be used to win over Persuadable standard account holders
- Persuadable and Laggard standard account holders will benefit from being informed about investments and pensions
- Another means to entice Laggard and Refusenik standard account holders is interest-free overdraft limits
- Fee-free banking users can be enticed with preferential rates, travel products, and wealth management services
- Travel products as part of a packaged account will appeal to Persuadable fee-free banking users
- Persuadables will also appreciate preferential rates and exclusive access to other products
- Laggards and Refuseniks may be won over by offering investment advice
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