A recent survey commissioned by Customer Owned Banking Association (COBA) of over 1,000 Australians reveals parents have the biggest influence on banking choices, with more than half (53%) choosing their primary bank due to parental guidance.
The survey also found that 61% of Aussies have never switched banks, meaning they could be missing out on benefits like competitive rates, superior customer service, and values-aligned institutions.
Switching banks might seem like a huge task, but it doesn’t have to be complicated.
So if you’re looking for a customer-owned bank that puts you first and offers competitive services, products, and a genuine commitment to your community – here is what you need to know to make the change.
Why switch banks?
Many Australians aren’t aware of the breadth of financial institutions available beyond the major, traditional investor-owned banks, or the distinct advantages offered by customer-owned banks.
There are over 50 customer-owned banks in Australia, all with competitive services and rates, and a commitment to putting customers first. Independent research has shown they offer market-leading services, are the most trusted in banking and they give back to their communities at a rate nine times higher than the major banks.
If you’re looking for a customer-owned bank, use our handy Find-a-bank tool to find one that aligns with your needs.
Before you start: research
When researching banks, look around to find one that truly fits what you need.
Think about the account types they offer – do they have the everyday and savings accounts you’ll use? What are their fees, and can you easily avoid them? How much interest will you earn on your savings? Consider how easy it is to access cash or use their online banking and app. It’s also wise to check what reviews say about their customer service.
How to switch banks in five steps
Step 1: Once you’ve found your new financial fit, open an account. Go online or visit a branch of your chosen new bank and ensure you have identification like a driver’s license or passport, your tax file number (TFN), and some money to open the account. Many customer-owned banks even let you open accounts in minutes online.
Step 2: Update your payments – this is an important one to avoid missing bills or salary payments. First, for your income, tell your employer your new bank’s BSB and account number – they’ll usually have a form for this, and don’t forget to record any government benefits or other regular income you receive.
Next, for your bills, make a list of everything that automatically comes out of your old account. This includes rent, loan payments, utility bills (electricity, internet, phone), streaming services (like Netflix or Spotify), and any other subscriptions. A good way to find everything is to check your last 12 to 13 months of bank statements from your old bank; some banks can even provide you with a list of direct debits.
Contact each company or log into their website to update your payment details with your new bank account. If you’ve set up recurring payments using your old debit or credit card, remember to update those with your new card details as well.
Also, if you have money automatically moving between your accounts (for example, from checking to savings), set these up again with your new bank.
Step 3: Once you’re sure all your direct deposits and automatic payments are set up with the new bank, slowly move your funds. Be sure to leave enough money in your old account to cover any final payments or bills that might still come through. It’s a good idea to keep the old account open for at least a month or two to catch anything you might have missed.
Step 4: Once you’re completely sure everything has moved over and there are no outstanding transactions, contact your old bank to close your account.
Step 5: Make sure you get confirmation that it’s closed and there are no remaining fees. It’s also important to shred any old debit cards and unused checks linked to the closed account.
Tips for a smooth switch
Always take your time; don’t rush, especially when updating payments!
For the first month or two, keep an eye on both your old and new accounts regularly.
Don’t forget about annual payments; some bills, like insurance or certain subscriptions, only come out once a year, so make sure you’ve accounted for them.
Switching banks can lead to significant savings and a better banking experience. With a little organisation, you’ll be enjoying your new bank in no time!
Find a customer-owned bank today: Findabank.com.au