The affluent consumer market living in Australia provides an attractive market
for financial institutions to target because of the wealth they hold.
Datamonitor' s Australia Financial Services Survey captures opinion from 406
affluent individuals.
Scope of this research
Details who wealthy consumers consider to be their main financial
provider, and associated branding attributes of banks.
Discusses affluent product trends for credit cards and HISA including
number of accounts, which provider they are with and why they were selected.
Analyses how affluent Australians plan to fund their retirement and the
use of financial planners.
Research and analysis highlights
The majority of wealthy respondents said they would only buy financial
products from an established provider. This is good news for the leading
providers with a long history in the market as their brands are likely to be
more appealing to customers who look for safety and security from a bank.
While leveraging existing relationships should boost HISA numbers, offering a
better rate is likely to be the biggest determinate for attracting completely
new clients and should be the focus for providers trying to break into the
market.
Wealthy consumers are likely to have more credit cards because of their
financial position and lifestyle. These individuals typically have high
incomes that allow them to pay off their monthly repayments and maintain a
high standard of living.
Key reasons to purchase this research
Review how wealthy individuals view your brand and which banks lead the
market in the consumers eye.
Identify affluent product trends including what factors influenced them to
select their main account provider.
Learn what improvements wealthy individuals would like to see from
financial planners.
Table of Contents
OVERVIEW
Catalyst
Summary
Methodology
EXECUTIVE SUMMARY
Most of Australia' s wealthiest clients prefer to deal with well-known
Australian banks
The vast majority of wealthy respondents consider an Australian bank to be
their main financial provider
HISAs are very much a part of the affluent market' s investment portfolio
Around half of wealthy respondents with a HISA have an online-only account
Around half of wealthy respondents have more than one credit card
Most wealthy clients selected their main credit card provider because they
held a transaction account there or based the choice on the rewards program on
offer
More wealthy Australians are banking on their own investment skills rather
than turning to a financial planner
Wealthy individuals are likely to select their financial planner based on
the perception of advice quality and recommendations from family and friends
The majority of wealthy respondents are happy with their current financial
planning arrangement
FINANCIAL PROVIDER TRENDS
Most of Australia' s wealthiest clients prefer to deal with well-known
Australian banks
Wealthy Australians want a financial provider that they know and trust
The vast majority of wealthy respondents consider Australian banks to be
their main financial provider
The CBA brand is highly regarded by the wealthy Australian sample
HIGH INTEREST SAVINGS ACCOUNT TRENDS
HISAs are very much a part of the affluent market' s investment portfolio
More than one in five wealthy Australians have multiple HISAs
The usual suspects hold the leading positions in the HISA market
Most wealthy individuals selected their HISA provider based on the
interest rate or because they already held a transaction account with the
bank
Around half of wealthy respondents with a HISA have an online-only
account
Advisors from the bank helped wealthy individuals learn about HISAs
Most wealthy clients have not switched their HISA over the last year
As expected, most HISA switchers moved for a better interest rate on
their money
Most wealthy clients are happy with their current HISA provider
CREDIT CARD TRENDS
Wealthy individuals are heavily influenced by the rewards program of a
credit card
Around half of wealthy respondents have more than one credit card
Visa branded credit cards are the most popular for wealthy Australians
The majority of wealthy individuals hold their main credit card with one
of the big four banks
Most wealthy clients selected their main credit card provider because
they already held a transaction account there or based their choice on the
rewards program on offer
Most affluent card holders have a credit card that offers rewards on
their purchases
Wealthy individuals are most likely to switch to a new card provider if
they charge no fees and offer the same credit card features
INVESTMENT PLANNING TRENDS
Most wealthy individuals are managing their own investments without the
aid of a financial planner
The majority of affluent respondents plan to fund their retirement from
superannuation, although HNWs are more likely to use investment property as
their source of retirement income
More wealthy Australians are relying on their own investment skills
rather than turning to a financial planner
Wealthy individuals are likely to select their financial planner based
on the perception of advice quality and recommendations from family and
friends
While around one in five wealthy respondents were completely happy with
their planner, there were plenty of suggestions for improvement from the rest
The majority of wealthy respondents are happy with their current
financial planning arrangement
APPENDIX
Data
Definitions
(Untitled sub-section)
Methodology
Further reading
Ask the analyst
Datamonitor consulting
Disclaimer
TABLES
Table: Financial provider trends
Table: What do you consider to be your main financial institution?
Table: From the following financial institutions please select the one you
think are the strongest in the following areas
Table: From the following financial institutions please select the one you
think are the strongest in the following areas
Table: How many high interest savings accounts do you have?
Table: Who do you have your main high interest savings account with?
Table: Why did you choose this provider?
Table: What type of account is your main high interest savings account?
Table: What sources of information did you use when choosing your provider
of main high interest saving account?
Table: Have you switched your main high interest savings account in the
last 12 months?
Table: Why did you switch your main high interest savings account provider?
Table: Why didn' t you switch your main high interest savings account
provider?
Table: How many credit cards do you have?
Table: What brand is your main (most commonly used) credit card?
Table: Who do you hold your main credit card with?
Table: Why did you choose your provider?
Table: What features does your main credit card have?
Table: How likely would you be to switch your main card provider for the
following reasons?
Table: How are you looking to fund your retirement?
Table: Who do you have as your main financial planner?
Table: Why did you choose your financial planner?
Table: What improvements could your financial planner make regarding
service?
Table: Have you switched your main financial planner in the last 12 months?
FIGURES
Figure: Most wealthy respondents would prefer to deposit their money in an
Australian bank rather than a foreign provider
Figure: CBA stood out from the pack as the main financial provider for
wealthy individuals
Figure: More affluent respondents perceive CBA as a secure, professional
and approachable bank than any other provider in the market
Figure: HNW respondents believe CBA is the strongest overall player in the
market followed by Westpac
Figure: The majority of wealthy Australian respondents have at least one
HISA
Figure: CBA has emerged as the provider with the largest HISA market share
Figure: Wealthy individuals are heavily influenced by the interest rate
they receive on their HISA
Figure: The online-only account is the most common product in the HISA
market
Figure: Wealthy individuals turn to financial advisors and family and
friends for information about HISA providers
Figure: One in 10 affluent respondents switched their main HISA in the
previous 12-month period
Figure: Many of the wealthy individuals that switched their HISA provider
in the last year chased a higher rate
Figure: Around one in five HNWs did not switch providers because of the
inconvenience involved
Figure: It is not uncommon for wealthy individuals to have multiple credit
cards
Figure: Around one in 10 wealthy individuals use an American Express
branded credit card
Figure: In most cases, HNWs were more likely than affluent respondents to
have a foreign bank as their main credit card provider
Figure: Having a premium branded card was ranked relatively low
Figure: A quarter of affluent respondents have a premium branded card
Figure: Wealthy clients would consider switching providers for less fees
and more rewards
Figure: More HNWs are planning to fund their retirement from investment
property than through superannuation
Figure: Most wealthy individuals are self-managing their investments
rather than employing the services of a financial planner
Figure: HNWs are heavily influenced by family and friends when selecting a
financial planner
Figure: HNWs want more face to face contact with their financial planner
Figure: Wealthy respondents do not intend to switch financial planners in
the coming 12 months
