Dissatisfied consumers are more prone to switching

By Staff Writer

Disgruntled consumers are increasingly voting with their feet and switching banks. Recent findings from Ernst & Young’s consumer banking survey for 2012 has found that South African bank consumer attrition had increased from 34% to 39% over the past year.

Bank charges and higher fees were cited as the main reasons for leaving. Bank fees were increased in 2012 to recoup a loss in interest income.


When asked how easy it is to switch accounts Gary Palmer, CEO of Paragon Lending Solutions, said: “It depends. If it’s transactional banking it is relatively easy as banks are very competitive. In terms of changing lender it is also getting easier.”


Christine Burrows, corporate communications manager, of FNB said that the bank had opened 1.3 million new accounts for the 2011/2012 financial year. “It’s relatively easy to change your account to FNB. For us, switching has become an acquisition tool. We have a whole team to facilitate people switching over to us. People can also do it online. All they need to do is email us proof of residence and a copy of their ID book. Consumers can get approved within 24 hours and their temporary cards are delivered in a matter of days.”


Palmer said the main reason people were looking into switching was because of they were being charged higher fees by banks. “Banks are charging more transactional costs and people are getting frustrated. Service is an issue too.”


Palmer added that before, during the boom times when banks were more generous with their lending criteria, people tended to remain loyal to their bank. However, things have changed now, believes Palmer. “Banks are making more money from non-interest income and people have become more open-minded now that banks have tightened up [their lending criteria] and charging more.”

Recent Articles

Featured What happens to the interest on your tax-free savings?

You may be interested in investing your savings in a tax-free savings account (TFSA). However, the amount you’re allowed to save in this kind of account is capped. So, what does this means for any interest you earn above the limit?

What does financial emigration entail?

Over the last couple of years, you’ve slowly been saving to move abroad. You’ve learned a new language, and mapped out all the places you plan to see. But should you take all your wealth with you?

6 Clever ways to spend your tax refund

After submitting your tax calculations to SARS, you may receive a tax refund. This is a tax break offered by SARS based on certain expenses. But what should you do with it? We have a look at six productive ways you can spend this money.

When to trade in your old car for a new one

You may have noticed that your car isn’t running as smoothly as it used to. This is particularly concerning if you’re hoping to sell it at a reasonable price, and buy yourself a modern alternative.

Deals

Full Body Massage at Meraki Beauty & Wellness Centre

Price: R99
When: Mondays to Thursdays
Where: Umhlanga

Archery and Drift Triking with Adventure Freaks

Price: R149
When: Mondays to Sundays
Where: Hartbeespoort

E-Bike Stellenbosch Wine Farm Tour and Wine Tasting

Price: R899
When: Tuesdays to Sundays
Where: Stellenbosch


Latest Guide

Guide to debt rehabilitation solutions