Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 79

Banks' poor cross sell of superannuation

The latest research report by Roy Morgan shows banks have a poor track record in selling superannuation services to their existing retail banking customer base and it may represent a significant opportunity. Australian banks only hold between 13% and 18% of their customers' total superannuation wallet.

Share of customers' superannuation wallet


Source: Roy Morgan Research , 12 months to July 2010 (n=33,901) and 12 months to July 2014 (n=33,812) NB: Groups include subsidiaries.

There are a number of key barriers to overcome if the banks are going to woo their existing retail customers better. Firstly, retail super customers don’t change superannuation providers easily. Secondly, their biggest competitors are the industry superannuation funds which have arguably performed better (even if the overall range of services is not as broad) and advertise very aggressively. Lastly, superannuants with their own SMSF, rightly or wrongly, are generally happy with their decision to 'go it alone'.

So while winning new customers is generally considered harder than cross selling services to existing ones, that might not be the case for superannuation. Most Australian retail superannuation holders remain disengaged from their superannuation and do not even bother to make an active choice about which fund (or which product) their contributions should be paid into. The speculated reasons for this are many and varied and include the lack of availability of independent, comparable superannuation fund performance and fee data.

But given the low penetration levels of banks into their customers superannuation wallet, the size of the prize might be worth it.

Interestingly, previous research by Roy Morgan (click here) showed banks hold a better track record the other way around, in providing banking services to their existing superannuation customers.

For example Westpac holds the lowest percentage at 13% of its customer’s total superannuation wallet, of the big four banks. But of the superannuation wallet that it does hold, around 60% of these superannuation customers have a banking product with Westpac.

The research report also shows industry super funds hold the single biggest share of banks customers’ superannuation wallet averaging around 25%.


Source: Roy Morgan Research Consumer Single Source, 12 months to July 2014, n=33,812. NB: Groups include subsidiaries

The banking sector in general is often criticised for its lack of competition, with the big four banks estimated to own around 80% of the deposits and lending to private households. But the banks have recently engaged in hard-fought customer convenience battles, mainly through their investment in information technology, in order to stay in the game and hold onto their market share. This success in banking services has yet to spill over into the provision of super to bank customers.

 

Les Goldmann has over 20 years experience as a Chartered Accountant. His other roles have included journalism, working as the policy and research manager for the Australian Shareholders Association and senior positions in the commercial and non profit sectors.

 

  •   9 September 2014
  • 1
  •      
  •   

RELATED ARTICLES

Reputations hit hard at the Royal Commission

banner

Most viewed in recent weeks

How cutting the CGT discount could help rebalance housing market

A more rational taxation system that supports home ownership but discourages asset speculation could provide greater financial support to first home buyers.

3 ways to fix Australia’s affordability crisis

Our cost-of-living pressures go beyond the RBA: surging house prices, excessive migration, and expanding government programs, including the NDIS, are fuelling inflation, demanding bold, structural solutions.

Is there a better way to reform the CGT discount?

The capital gains tax discount is under review, but debate should go beyond its size. Its original purpose, design flaws and distortions suggest Australia could adopt a better, more targeted approach.

Want your loved ones to inherit your super? You can’t afford to skip this one step

One in five Australians die before retirement and most have not set up their super properly so their loved ones can benefit from all their hard work and savings. 

Welcome to Firstlinks Edition 648 with weekend update

This is my last edition as Editor of Firstlinks. I’m moving onto a new role though the newsletter will remain in good hands until my permanent replacement is found.

  • 5 February 2026

Super is catching up, but ageing is a triple-threat

An ageing Australia is shifting the superannuation system’s focus from accumulation to the lifecycle of retirement. While these pressures have been anticipated for decades, they are now converging at scale and driving widespread industry change.

Latest Updates

Economy

Has Australia wasted the last 30 years?

The 20 years after Peter Costello left Treasury have been deemed wasted...by Peter Costello. The missed opportunities for Australia began long before.  

Retirement

Navigating the next stage of life in retirement

Retirement planning is more than just saving enough money. Long-term care needs, housing choices, and social networks are just as critical for a happy and enjoyable life.

Strategy

Showcasing your value in the age of AI shortcuts

Knowledge is becoming commoditized in the age of artificial intelligence but experience, taste, and judgement are still at a premium.

Planning

Financial advice as the pathway to economic security

Financial advice can lead to improved financial literacy, a healthier super balance and a higher standard of living in retirement. Is now the time to give yourself the gift of financial advice?

Economy

The overlooked driver of energy inflation

The impact of energy policy on inflation in Australia is often overlooked. Transitioning to renewable energy can lead to inflated costs that affect the entire economy and productivity growth.

Economy

A 2026 rotation story: Europe’s undervalued small caps

In 2026, Europe is poised for a 'Goldilocks' scenario with cooling inflation and lower rates, driven by fiscal stimulus. Small caps offer an attractive entry point before capital rotation.

Investment strategies

What we do when things go up (a lot)

Recent price spikes, particularly gold's surge, trigger behavioral responses like availability bias, storytelling, extrapolation, and FOMO, which create self-reinforcing feedback loops influencing investor sentiment and market trends.

Sponsors

Alliances

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.