Royal Commission backlash continues for banks: Research

About one in three Australians are more likely to switch their banking institution as a direct result of the Royal Commission, according to new research.

About 10% of respondents to a survey commissioned by the Customer Owned Banking Association claim to have already changed their provider, with a further 17% saying they are considering changing.

However, the majority (58%) stated the Royal Commission has not caused them to consider changing their banking institution. Of that number, 46% were indifferent to switching, saying the Royal Commission made them neither more nor less likely to switch.

The survey consisted of two questions: whether the Royal Commission into banking caused respondents to consider changing their banking institution and whether they were more or less likely to switch institutions as a result of the Commission.

While the research shows Australians are considering switching providers - not moving away from the big four institutions - COBA chief executive Michael Lawrence believes the data is supportive of increased interest in the customer owned banking sector.

"The feedback we're getting is that there is great interest in a model that puts customers first, where 100% of profits are used to benefit customers," he said.

As at March 2018, total customer owned banking sector assets sit at about $111 billion, held on behalf of four million customers.

Read more: Royal CommissionCOBACustomer Owned Banking AssociationMichael Lawrence
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