The savings market is facing significant challenges at present. Competition for deposits has been increasing, while the market has become more fragmented, with new brands entering. At the same time, depositors are becoming less loyal, and are more willing to switch. Savers also display strong differences in their savings behaviors and attitudes, which providers need to account for.
Learn what strategies will be most effective for acquiring and retaining both higher value and lower value savers.
Understand what factors are driving consumer behavior in the savings channel.
Analyze how Australia's retail deposits are distributed by type of provider and type of account.
What strategies should you employ to attract high value and low value savers?
How do the factors driving savings behavior vary across different consumer segments?
What are consumers main priorities and concerns with respect to their savings?
There has been a major shift from in-branch to online opening of savings accounts. The trend is most pronounced among higher value savers. Customers also show different channel preferences depending on their level of affluence and type of activity executed, suggesting that channel strategies should vary depending on providers' target groups.
Savers that value novelty can be enticed with customizable and exclusive products. Depositors with higher savings balances are particularly interested in new or original financial products.
Savers with higher balances tend to be more rate-sensitive, and conduct more research to get a better deal. Online customers are more prone to switching than savers banking with a high street bank or mutual if rivals offer more competitive interest rates, suggesting that higher rates should be reserved for those willing to commit.