The Affluent Market in Australia

Published by: Datamonitor

Published: Jan. 7, 2010 - 53 Pages

Table of Contents

OVERVIEW

Catalyst

Summary

Methodology

Executive Summary

Most of Australia's wealthiest clients prefer to deal with well-known Australian banks

The vast majority of wealthy respondents consider an Australian bank to be their main financial provider

HISAs are very much a part of the affluent market's investment portfolio

Around half of wealthy respondents with a HISA have an online-only account

Around half of wealthy respondents have more than one credit card

Most wealthy clients selected their main credit card provider because they held a transaction account there or based the choice on the rewards program on offer

More wealthy Australians are banking on their own investment skills rather than turning to a financial planner

Wealthy individuals are likely to select their financial planner based on the perception of advice quality and recommendations from family and friends

The majority of wealthy respondents are happy with their current financial planning arrangement

Table of Contents

Table of figures

Table of tables

Financial Provider Trends

Most of Australia's wealthiest clients prefer to deal with well-known Australian banks

Wealthy Australians want a financial provider that they know and trust

The vast majority of wealthy respondents consider Australian banks to be their main financial provider

The CBA brand is highly regarded by the wealthy Australian sample

High Interest Savings Account Trends

HISAs are very much a part of the affluent market's investment portfolio

More than one in five wealthy Australians have multiple HISAs

The usual suspects hold the leading positions in the HISA market

Most wealthy individuals selected their HISA provider based on the interest rate or because they already held a transaction account with the bank

Around half of wealthy respondents with a HISA have an online-only account

Advisors from the bank helped wealthy individuals learn about HISAs

Most wealthy clients have not switched their HISA over the last year

As expected, most HISA switchers moved for a better interest rate on their money

Most wealthy clients are happy with their current HISA provider

Credit Card Trends

Wealthy individuals are heavily influenced by the rewards program of a credit card

Around half of wealthy respondents have more than one credit card

Visa branded credit cards are the most popular for wealthy Australians

The majority of wealthy individuals hold their main credit card with one of the big four banks

Most wealthy clients selected their main credit card provider because they already held a transaction account there or based their choice on the rewards program on offer

Most affluent card holders have a credit card that offers rewards on their purchases

Wealthy individuals are most likely to switch to a new card provider if they charge no fees and offer the same credit card features

Investment planning Trends

Most wealthy individuals are managing their own investments without the aid of a financial planner

The majority of affluent respondents plan to fund their retirement from superannuation, although HNWs are more likely to use investment property as their source of retirement income

More wealthy Australians are relying on their own investment skills rather than turning to a financial planner

Wealthy individuals are likely to select their financial planner based on the perception of advice quality and recommendations from family and friends

While around one in five wealthy respondents were completely happy with their planner, there were plenty of suggestions for improvement from the rest

The majority of wealthy respondents are happy with their current financial planning arrangement

APPENDIX

Data

Definitions

Affluent market

High net worth market

Wealthy respondents

Onshore

Methodology

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: Financial provider trends

Table 2: What do you consider to be your main financial institution?

Table 3: From the following financial institutions please select the one you think are the strongest in the following areas

Table 4: From the following financial institutions please select the one you think are the strongest in the following areas

Table 5: How many high interest savings accounts do you have?

Table 6: Who do you have your main high interest savings account with?

Table 7: Why did you choose this provider?

Table 8: What type of account is your main high interest savings account?

Table 9: What sources of information did you use when choosing your provider of main high interest saving account?

Table 10: Have you switched your main high interest savings account in the last 12 months?

Table 11: Why did you switch your main high interest savings account provider?

Table 12: Why didn't you switch your main high interest savings account provider?

Table 13: How many credit cards do you have?

Table 14: What brand is your main (most commonly used) credit card?

Table 15: Who do you hold your main credit card with?

Table 16: Why did you choose your provider?

Table 17: What features does your main credit card have?

Table 18: How likely would you be to switch your main card provider for the following reasons?

Table 19: How are you looking to fund your retirement?

Table 20: Who do you have as your main financial planner?

Table 21: Why did you choose your financial planner?

Table 22: What improvements could your financial planner make regarding service?

Table 23: Have you switched your main financial planner in the last 12 months?

List of Figures

Figure 1: Most wealthy respondents would prefer to deposit their money in an Australian bank rather than a foreign provider

Figure 2: CBA stood out from the pack as the main financial provider for wealthy individuals

Figure 3: More affluent respondents perceive CBA as a secure, professional and approachable bank than any other provider in the market

Figure 4: HNW respondents believe CBA is the strongest overall player in the market followed by Westpac

Figure 5: The majority of wealthy Australian respondents have at least one HISA

Figure 6: CBA has emerged as the provider with the largest HISA market share

Figure 7: Wealthy individuals are heavily influenced by the interest rate they receive on their HISA

Figure 8: The online-only account is the most common product in the HISA market

Figure 9: Wealthy individuals turn to financial advisors and family and friends for information about HISA providers

Figure 10: One in 10 affluent respondents switched their main HISA in the previous 12-month period

Figure 11: Many of the wealthy individuals that switched their HISA provider in the last year chased a higher rate

Figure 12: Around one in five HNWs did not switch providers because of the inconvenience involved

Figure 13: It is not uncommon for wealthy individuals to have multiple credit cards

Figure 14: Around one in 10 wealthy individuals use an American Express branded credit card

Figure 15: In most cases, HNWs were more likely than affluent respondents to have a foreign bank as their main credit card provider

Figure 16: Having a premium branded card was ranked relatively low

Figure 17: A quarter of affluent respondents have a premium branded card

Figure 18: Wealthy clients would consider switching providers for less fees and more rewards

Figure 19: More HNWs are planning to fund their retirement from investment property than through superannuation

Figure 20: Most wealthy individuals are self-managing their investments rather than employing the services of a financial planner

Figure 21: HNWs are heavily influenced by family and friends when selecting a financial planner

Figure 22: HNWs want more face to face contact with their financial planner

Figure 23: Wealthy respondents do not intend to switch financial planners in the coming 12 months

Abstract

• Details who wealthy consumers consider to be their main financial provider, and associated branding attributes of banks.
• Discusses affluent product trends for credit cards and HISA including number of accounts, which provider they are with and why they were selected.
• Analyses how affluent Australians plan to fund their retirement and the use of financial planners.

• Review how wealthy individuals view your brand and which banks lead the market in the consumers eye.
• Identify affluent product trends including what factors influenced them to select their main account provider.
• Learn what improvements wealthy individuals would like to see from financial planners.

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