Introduction

In the wake of the global financial crisis, banks have tried to strengthen their balance sheet by attracting a larger deposit base. With the dearth of affordable wholesale funding, retail deposits have become a more important source of funding. This report analyzes a retail deposit market in which competition is heating up.

Scope of this research

• Includes a comprehensive overview of the Australian deposit market.
• Draws upon a large Datamonitor consumer survey of Australian deposit account customers.
• Forecasts upcoming market developments.
• Includes market overview, analysis of consumer behaviour, competitor dynamics and future developments.

Research and analysis highlights

Household deposits have grown at a relatively fast pace in Australia over the last five years, with growth picking up in the last two years. Between April 2004 and April 2009, household deposits on the books of Australian banks grew from A$234bn to A$429bn.

In the Datamonitor AFS survey, 86% of respondents found it 'Very likely' or 'Quite likely' that unemployment would rise in the next 12 months. More than two thirds of respondents found it 'Very likely' or 'Quite likely' that Australia would enter recession during the same time frame, and 59% thought average property prices would fall.

Interest rates have converged over the last several years, with the difference in interest rates between different products becoming smaller. In many cases online savings accounts have driven up the rate of less competitive-priced products.

Key reasons to purchase this research

• Improve your strategic position using Datamonitor's in-depth analysis of the Australian deposit market.
• Understand the unique challenges the deposit market is facing, and benefit from forecasts of future product trends.
• Gain insight into the current mindset of Australian deposit customers.