Why don’t individuals swap banks?
ACCC Retail Deposits Inquiry shines mild on banks method to deposit accounts; insights in ACCC Report influences Upworth to create ‘Financial savings Account Scanner’
The 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
In response to Alex Chavotier, the ACCC Report key factors are:
Restricted competitors, rates of interest not shownEntry is hardProduct complexity (energetic pricing technique)Segmentation, worth discrimination (introductory charges, bonus charges; ACCC report discovered 70% of account holders didn’t obtain the bonus charge)Family deposits matterComparison websitesPeople typically don’t swap banks – why? Can CDR assist resolve this?
On this episode we talk about:
ACCC Report – prime points/key chapters (and Upworth’s interpretation)Deposit accounts: restricted competitors, rates of interest not shownMany banks provide retail deposit merchandise, however the sector is concentrated with limitations to entry and enlargement; There are 4 main banks and 6 mid-tier banks which provide 89% of retail deposits, and an extended tail of smaller banks supplying the remainderOpen Banking in Australia is sluggish – why?Chapter 7: Strategic pricing methods result in higher complexity for customers and, for some, poorer outcomes – why?Alternatives for Upworth? Financial savings Account Scanner; how does it work?What do customers / clients want to attach? Eg financial institution accounts. And the way do they do that?Tech behind the brand new product? Platform, APIs, open banking, who do you accomplice with?Outcomes up to now?
About Alex Chavotier:
Began profession in funding banking in Europe earlier than working at McKinsey and Quantum Black in SydneyWas on the forefront of McKinsey´s work in AI, together with the event of a buying and selling answer that secured inner VC fundingConsulted to all the massive Australian banks on an array of strategic matters and projectsCame again to Australia 2 years in the past to start out Upworth after a 3-year stint in Mexico as right-hand to the Founder and CEO of ZeBrands, a profitable scale-up corresponding to Koala right here (mattresses offered on-line)
About Upworth:
Upworth is the wealth superapp.A one-stop-shop for private funds the place you’ll be able to join all of your accounts to trace your internet value, entry distinctive and customized insights and apply for monetary merchandise in a number of clicks
