The federal government should monitor skyrocketing bank fees, according to an Australian Consumer Association survey.
The survey shows 77% of respondents, including small business owners, believe the government has a role in monitoring fees, which have risen by 87% in the past four years, ACA financial policy officer Catherine Wolthuizen says.
"The banks appear to be backsliding in key areas, particularly regarding the level of fees and their commitment to the community," she says.
"After five years of growing dissatisfaction, it's clear the federal government must fix the market failure.
"This means a fees-monitoring power for the ACCC and minimum mandatory standards of access, affordability and accountability for consumers, backed by legislation."
The survey found:
- 63% of respondents say poor value for money is the main problem they have with their financial institution
- 69% think banking institutions don't care about their social obligations to the community
- 67% believe their bank is mostly concerned with increasing its profits rather than providing a service.
The survey backs up findings contained in a Financial Services Consumer Policy Centre report released last month, which shows regulatory watchdogs and government have failed to protect small businesses from a lack of competition in the provision of banking services.
Wolthuizen says the big four banks have not improved their customer satisfaction over the past four years, with 23 to 32% of customers dissatisfied with their bank.
"Despite this discontent, 70% of big four customers said they were unlikely to change to another institution in the next year – they feel stuck, it's too difficult or each bank seems to be as bad as the next," she says.
Australian Bankers Association chief executive David Bell says while the survey shows more work is needed to reduce dissatisfaction levels, steps have been taken by individual banks to help low income earners access accounts.