This report analyzes the Australian household deposits market and its constituent parts. It examines how the size of the deposits market has altered and sizes the overall market. Furthermore, it identifies and analyzes five key trends that will affect the market over the coming years. Lastly, it forecasts the value of the deposits market until 2018 using multivariate regression analysis.
Size your potential client base for varying savings products using Verdict Financial's Deposits Forecast Model.
Understand the drivers of retail deposit growth and how these change over time.
Stay competitive by understanding shifting market dynamics and learning how key trends will affect the market.
Which deposits segments are forecast to grow the fastest in the Australian market?
What will drive growth over the next five years?
What are the key trends and developments in the market and how will they affect ADIs over the next five years?
Household deposits have been growing steadily over recent years, amounting to A$688,754m in December 2013. Based on Verdict Financial Financial's modeling, approximately 71% of household deposits are kept in savings accounts, 10% in offset accounts, and 19% in transaction accounts.
The trend towards remote channels is set to become even more pronounced, posing an opportunity as well as a challenge for ADIs, and making effective channel management more important than ever. While mobile and online banking have the potential to significantly reduce ADIs' overall costs, it also creates additional churn in the market.
Household deposits are expected to record a CAGR of 8.0% between 2013 and 2018, compared to a CAGR of 10.6% over the past six years. Consequently, competition for deposits will increase, especially as providers are looking to grow their proportion of household deposits to comply with Basel III.