Chris Terry

Business banking in Australia: a comparison of expectations

Addresses the question of how well the banking industry in Australia understands the needs of their business customers. It is based on a nationwide survey of chief executive officers of 2,500 business firms and 25 banks conducted during 1996. In the survey, both groups were asked to rank those factors they consider most important in the bank selection process. Overall, significant differences were found in six out of 15 factors. When the responses were analyzed on the basis of market segment served, we found that Australian bankers have missed the mark when it comes to the issues of competitive prices and service delivery. These results will no doubt have an impact on the marketing efforts of Australian banks as they move into the twentieth century. They should also be useful to firms currently operating in Australia or firms interested in doing so in the future.