iscover
iscover 
As reported by Roy Morgan, 2.9 per cent (670,000) of Australians switched their main financial institution (MFI) in 2024.
The big four saw 339,000 customers switch their MFI, while they gained 347,000, seeing gains of 9,000 customers.
Regional banks didn’t perform so well, gaining 79,000 but losing 100,000, a total loss of 21,000.
Newer digital banks performed much better, with gains of 60,000 and losses of 29,000. This saw an increase of 31,000 main customers.
However, it was Macquarie who outperformed the rest. While the lender lost 5,000 main customers, it gained 48,000, highlighting an increase of 43,000.
“In the last 12 months, newer digital banks (ANZ Plus, ME Bank, Ubank, Up) and Macquarie have gained more of the main financial institution (MFI) market. The newer digital banks’ share grew by 0.3 per cent to 2.0 per cent, mostly among people under 40. Macquarie’s share increased by 0.4 per cent to 1.5 per cent, with growth across all age groups,” said Roy Morgan’s general manager of financial services, Suela Qemal.
“Digital banks have grown by offering enticing deposit products, including competitive higher interest rates and lower fees. They are now broadening their focus to provide compelling mortgage products to keep attracting younger customers.”
So, why are so many customers turning to Macquarie and digital banks? A culmination of poor interest rates, fees, and service were recognised as key drivers.
“Australians are primarily switching their main financial institution (MFI) due to poor interest rates, poor service, and high fees. The significance of each factor varies based on the bank people are leaving and the one they are moving to,” said Qemal.
“Among those switching their MFI from a big four bank to a digital bank, 40 per cent cite poor interest rates as the main reason, followed by 35 per cent who point to poor service, and 22 per cent who mention high fees. Digital banks are benefiting from offering better interest rates, which is particularly appealing during the ongoing cost-of-living crisis.
“In 2024, digital banks gained ground by attracting customers with their deposit products but are now shifting focus to mortgages. This trend is expected to grow in 2025, especially with younger customers seeking better financial solutions.”
For Macquarie, this data showed continued strong performance for the lender, as home loan growth continuously outperforms the other majors.
With a cash rate call dropping later today (18 February), borrowers may receive some much-needed relief. However, if these trends continue and consumers are increasingly disillusioned with the majors, a rate cut may not be enough to satisfy.
[Related: Brokers ‘fundamental’ in Macquarie’s strong loan growth]
