Research results shows Big Banks facing a credibility crisis, says Credit Union SA

A national poll of more than 1000 people has confirmed that the majority of Australians have little or no trust when it comes to getting financial advice from the big four banks, and nearly 90 per cent have called for greater transparency when it comes to rates and fees.

CEO Grant Strawbridge said the survey results underline the community’s strong sentiment for urgent reforms to be made to Australia’s banking system so that customers receive better information to help them make more informed choices.

“These survey results should serve as a wake-up call for politicians on the urgent need to create a fairer banking system, reinforced by the fact that 86 per cent of Australians agree that there needs a little or a lot more transparency and clarity regarding rates and fees,” Mr Strawbridge said.

“It is also a warning shot fired across the bow of all the big banks, with 62 per cent of survey respondents confirming that they have little or no trust when it comes to them giving people independent financial advice at a time when efforts should be focussed on growing consumer confidence,” he said.

“Consumers have every right to feel disappointed and angry because changes made to Federal Government regulations during the GFC designed to encourage consumer confidence have backfired because they have only benefited the major banks rather than the broader banking sector.”

Mr Strawbridge said a growing number of people are opting for smaller financial institutions because they are disillusioned and distrustful of big banks, but are being duped because they often move to an alternative that is actually owned by one of the industry’s major players anyway.

“A total of 54 per cent of Australians want greater competition in the banking market and we call on the Financial System Inquiry currently underway to use this clear public sentiment as an opportunity to address these serious concerns once and for all about competition and consumer awareness of banking products,” Mr Strawbridge said. 

“There needs to be a level playing field which gives Australians greater choice and options, and resolve the unfair competitive advantage that big banks currently have over the smaller operators in the market,” he said.

To find out more about the research poll commissioned by the Customer Owned Banking Association visit www.balancebanking.com.au  

As South Australia’s third largest credit union, Credit Union SA has a total of seven branches, over $800 million in assets and around 49,000 members.

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