DUBLIN–(BUSINESS WIRE)–The “Australian
Retail Deposits: Forecasts and Opportunities” report has been
added to ResearchAndMarkets.com’s offering.
Australian Retail Deposits: Forecasts & Opportunities
analyzes the performance of the Australian retail deposit market.
Drivers of recent performance and key trends in savings behavior are
examined, with implications for future growth and competitive ADI
positioning.
The Australian retail deposit market clocked up stronger growth in 2018
following a deceleration in 2017 and is now valued at A$1.1tn. The
market has posted most of its growth in the instant access categories
rather than term deposits, though the latter remains the second most
important store of savings for Australians after superannuation.
While the net savings rate of the household sector is in long-term
decline, deposits are expected to retain their draw. The only blip in
its forecast growth to A$1.6tn by 2022 is a minor decline in favor of
the growing pile of superannuation savings.
Key Findings
-
Fee income derived from accounts is largely flat, highlighting the
need for efficiency of delivery. -
Depressed APRs are preventing a shift into term deposits, with instant
access accounts still attracting the bulk of consumer attention. -
The Australian Capital Territory has the highest average deposit
values, while the Northern Territory has the lowest. -
Neobanks are finally making their presence felt in the Australian
market, albeit mainly in younger-age cohorts.
Reasons to Buy
-
Discover the factors that will affect the savings market in 2019 and
beyond -
Understand which strategies will be the most effective in attracting
new retail deposits - Learn about the new savings innovations being introduced to the market
-
Realize what impact the introduction of neobanks will have on
Australia’s deposit market -
Reveal how consumers’ decreasing savings rate interacts with a
challenging economic climate -
Expose the latest consumer behavioral trends and preview how these
will affect products demanded in the retail savings market
Companies Mentioned
- Westpac
- Commonwealth Bank of Australia
- ANZ
- National Bank of Australia
- Up Bank
- Xinja
Topics Covered
1. EXECUTIVE SUMMARY
1.1. Deposit growth will hold up despite a lower household savings rate
1.2. Key findings
1.3. Critical success factors
2. SIZING AND FORECASTING
2.1. Retail deposits will reach $1.6tn by 2022
2.1.1. Growth is hard to come by when interest rates are so low
2.1.2. Superannuation will increasingly dominate the retail savings
pool, at the expense of other lines of business
2.2. Certificates of deposit are in long-term decline due to low rates
2.2.1. Deposits in transaction accounts and instant-access savings or
cash management accounts have grown
2.2.2. The shift in deposit products was the result of a convergence in
APRs as rates have declined
2.3. Regional deposit markets are heavily skewed towards the largest
states
2.3.1. The East coast dominates the deposit market, with little change
forecast
2.3.2. Total deposit growth is largely dependent upon average deposit
growth in such a mature market
2.3.3. All states will see a slowing of deposit growth but Queensland
and Western Australia will suffer the most
3. DRIVERS OF GROWTH AND PRODUCT CHOICE
3.1. Macroeconomic conditions are mixed, moderating growth
3.1.1. Net saving by households is trending down from its post-financial
crisis high and will constrain growth
3.1.2. Consumer confidence has been erratic but remains down from the
years of the mining boom
3.1.3. The lack of wage growth in Australia has severely constrained the
growth of deposits
3.1.4. A shift towards life stages where assets are run down rather than
accumulated moderates growth
3.1.5. Deposit rates, though low, are enough to draw in savings as other
asset classes fail to impress
3.2. Savings goals have shifted away from new home buying
3.2.1. Contingency funds and holidays are top priorities for savers
3.2.2. Older consumers are a hot market for deposits
3.3. Switching rates remain low, making rapid growth a struggle
3.3.1. Switching has never been popular in Australia but is modestly
increasing again
3.3.2. The emerging affluent market should be the focus of ADIs’ efforts
3.3.3. Switchers are motivated by an interest in banking and financial
management
3.3.4. Personal financial management is becoming a staple of the
transaction account relationship
4. COMPETITIVE DYNAMICS
4.1. The big four dominate the retail savings market
4.2. Commonwealth Bank retains a leading market share
4.2.1. The retail deposit market remains highly consolidated, though
smaller players are gaining
4.2.2. Commonwealth Bank retains a leading market share
4.2.3. Consolidation has continued among mutual players
4.2.4. Attracting significant deposits in Australia is usually a
function of cross selling
4.3. Alternative banks are flooding into the market, making neobanks a
growing threat
4.3.1. The Australian market has had little in the way of new entrants
for many years
4.3.2. Established ADIs have the edge with security and service
5. APPENDIX
5.1. Abbreviations and acronyms
5.2. Definitions
5.2.1. Neobanks
5.3. Bibliography
5.4. Further reading
For more information about this report visit https://www.researchandmarkets.com/r/6cjsfj
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Related
Topics: Retail
Banking
