BankWatch proving unpopular with bank customers
Tuesday July 7, 2009
Australian bank customers have had a great deal to complain about over recent months with new ATM fees and higher mortgages interest rates just a few of the latest costs associated with banking. This paired with reports that Australian banks are actually reporting higher profits now than before the Global Financial Crisis has resulted in many industry analysts to question why 90 percent of consumers remain with the major banks.
Building on this is the complete lack of use of the Rudd Government's BankWatch program, implemented last November and designed to create fair competition within the Australian bank industry for the benefit of bank customers. However, this is proving not to be the case with minimal customers using the program every week.
BankWatch is a program that makes it easier for bank customers to switch banks through a "listing and switching" service by cutting out unnecessary paperwork and processes. BankWatch is essentially a program that allows bank customers to "vote with their feet" and easily moving between the banks offering the best rates for customers, ideally creating more balance within the bank and finance industry.
Through the BankWatch program Australian banks have agreed to provide their bank customers with complete lists of credits and direct debits for the purpose of identifying their transfer needs while offering assistance in establishing direct debits.
However, according to a National Australia Bank spokesperson the number of people actually using the program in their knowledge is approximately two customers a week using the system.
Suggested reasons for lack of customers use of the BankWatch program include unawareness of the program, bank customer satisfaction to BankWatch being too complicated. It was recommended that the BankWatch program be reviewed after twelve months with discussions in regards to whether a centralised system is more ideal for the Australian banking system and customers.
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