Anybody get deals from their OWN bank?

[s2ksimon]

I have been a Westpac customer for over 25 years - I think their attitude towards existing customers is going to negatively impact them medium/longer term.

A few months ago I noticed the interest rate they advertised for a margin loan was lower than my current loan (provided by Westpac). I called and was told it was a rate only for new customers, offered a small reduction that was still higher than the advertised rate.

Earlier this week I noticed a no annual fee promo "no annual fee on the life of the card", called up asking for this to be applied to my card (same card as the offer) was told it was only for new customers and they best they could offer was no annual fee for 1 year. Cancelled that card and will look to move all products away from Westpac to other banks.

 

[prozac]

Welcome to AFF s2ksimon . This is typical of the majors unfortunately.

 

[burmans]

I have been a Westpac customer for over 25 years - I think their attitude towards existing customers is going to negatively impact them medium/longer term.

This is a common "opinion" but there is a considerable amount of evidence that customers in general do not change banks easily. So banks (and others) find that spending money on attracting new customers is a better way to increase revenue over discounting for existing customers.

Having said that I have found that ringing up/emailing and telling them I have a better offer somewhere else has generally been met with an offer that meets other majors at least IF you indicate that you are genuinley thinking of leaving.

If not, well yes moving will work.

Do I like this attitude of the banks, well no. But I actually have changed my mind on loyalty, I think the banks are acting perfectly rationally given the evidence about customer behaviour.

 

[Moopere]

But I actually have changed my mind on loyalty, I think the banks are acting perfectly rationally given the evidence about customer behaviour.

Indeed. Frustrating though it can be I am the same. The frustration comes, I think, from our general understanding of what the english word 'loyalty' actually means, versus its distorted common use meaning in the contemporary business world.

So, after many years of gnashing of teeth and generally feeling hard done by, I no longer view these types of relationships in a traditional 'loyalty' sense. Now, when purchase decisions or reviews need to be made the field is completely open, and each potential provider needs to make a play for my business. Those who can't be bothered won't gain it, and they won't even know I'm gone most likely, but those who put in even a bit of effort are in with a chance to be one customer better off.

If you look around the world it always seems to me that there is fierce competition between market players everywhere .... except here in Australia. Traditionally, or at least for as long as I can remember, this was put down to our market being 'small' - but I'm unconvinced. Our population is now what? About 23-24Million? A lot of smaller countries and administrative regions don't have populations this large, yet their marketplaces are still strong and robust. I think its possible that we're all just a bit lazy as consumers. Business after all will _always_ follow consumer trends - its in their nature to try and be successful.

I try as hard as I can now to avoid lock-in contracts, keep myself nimble and flexible. I should be able to move bank, insurer, telco, airline, whatever, almost instantly.... new T&C arrive that I don't like (for example) - ok, what are you prepared to do to keep my business and assuage my pain? Oh? Nothing? Okay then, nice doing business, see you in the next life.

 

[robd]

I've been with Commbank (mortgage only) since purchasing back in 1999. Over the course of the time I've been with them, I have phoned a couple of times and asked if they can offer a better rate for me (based on offers advertised to new customers), but they have declined each time citing that my loan amount wasn't worth it to them). About a month ago, I contacted UBank (NAB offshoot) and settled the refinance saving myself a couple of hundred bucks a month and reduced my interest rate by 0.7 percent. The new loan has all the same features as Commbank - fee free, redraw, 100% offset, etc. The switch cost about $300 which will be saved within a few months. Happy with my choice.

 

[burmans]

I've been with Commbank (mortgage only) since purchasing back in 1999. Over the course of the time I've been with them, I have phoned a couple of times and asked if they can offer a better rate for me (based on offers advertised to new customers), but they have declined each time citing that my loan amount wasn't worth it to them). About a month ago, I contacted UBank (NAB offshoot) and settled the refinance saving myself a couple of hundred bucks a month and reduced my interest rate by 0.7 percent. The new loan has all the same features as Commbank - fee free, redraw, 100% offset, etc. The switch cost about $300 which will be saved within a few months. Happy with my choice.

Good choice, although we all like to think we are a valued customer the reality for many banks it's a number game, if they don't value you find someone who will

 

[jastel]

We'll after a small win, I thought it would be rather simple to increase the credit limit on my business card by $5000 now I am spending more on it....no such luck, 20 page application form sitting on my desk...argh!

I bet after I fill it in they will OFFER me unwanted increases...