Why don’t people change banks?
ACCC retail deposits survey shines light on banks’ approach to deposit accounts. Insights from the ACCC report have implications. Upworth To create a ‘Savings Account Scanner’
FinTech Report Podcast: Episode 54: Alexandre Chavotier, Co-Founder & CEO, Upworth:
https://fintechsummit.com.au/the-fintech-report-podcast/
https://www.buzzsprout.com/1643860/15609567
Key findings from the ACCC report, according to Alex Chavotier, include:
- Limited competition, no interest rate disclosure
- It’s difficult to get in
- Product Complexity (Active Pricing Strategy)
- Segmentation, pricing discrimination (introductory rates, bonus rates; ACCC report says 70% of account holders fail to achieve bonus rates)
- Household savings are important
- Comparison website
- People generally don’t change banks. Why do they do that? Can CDR help solve this problem?
In this episode we discuss:
- ACCC Report – Key Issues/Key Chapters (and Upworth’s Interpretation)
- Deposit Accounts: Limited competition, no interest rate disclosure
- Although many banks offer retail deposit products, this is a concentrated sector with barriers to entry and expansion. The big four banks and six mid-sized banks provide 89% of retail deposits, with many smaller banks providing the remainder.
- Why is Australia’s open banking slow?
- Chapter 7: Strategic Pricing Strategies Create More Complexity for Consumers and Worse Results for Some. Why?
- Upworth Opportunity? Savings Account Scanner; How Does It Work?
- What should the user/customer connect? For example, a bank account. And how do they connect it?
- New product technology? Platforms, APIs, open banking, who do you work with?
- What are the results so far?
About Alex Chaboti:
- He began his career in investment banking in Europe before working at McKinsey and Quantum Black in Sydney.
- He has been at the forefront of McKinsey’s AI work, including developing transactional solutions that have secured internal VC funding.
- Consulting with all major Australian banks on a range of strategic topics and projects
- After working in Mexico for 3 years as the right hand man to the founder and CEO of ZeBrands, I returned to Australia 2 years ago to start Upworth, a successful scale-up business that can be compared to Koala (online mattress sales) here.
About Upworth:
- Upworth It’s a super app for wealth.
- A one-stop shop for personal finances that lets you connect all your accounts to track your net worth, access unique, personalized insights, and apply for financial products in just a few clicks.