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

Building a lazy ETF portfolio in 2026

What are the best ways to build a simple portfolio from scratch? I’ve addressed this issue before but think it’s worth revisiting given markets and the world have since changed, throwing up new challenges and things to consider.

Get set for a bumpy 2026

At this time last year, I forecast that 2025 would likely be a positive year given strong economic prospects and disinflation. The outlook for this year is less clear cut and here is what investors should do.

Meg on SMSFs: First glimpse of revised Division 296 tax

Treasury has released draft legislation for a new version of the controversial $3 million super tax. It's a significant improvement on the original proposal but there are some stings in the tail.

Ray Dalio on 2025’s real story, Trump, and what’s next

The renowned investor says 2025’s real story wasn’t AI or US stocks but the shift away from American assets and a collapse in the value of money. And he outlines how to best position portfolios for what’s ahead.

10 fearless forecasts for 2026

The predictions include dividends will outstrip growth as a source of Australian equity returns, US market performance will be underwhelming, while US government bonds will beat gold.

13 million spare bedrooms: Rethinking Australia’s housing shortfall

We don’t have a housing shortage; we have housing misallocation. This explores why so many bedrooms go unused, what’s been tried before, and five things to unlock housing capacity – no new building required.

Latest Updates

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.

Superannuation

The Division 296 tax is still a quasi-wealth tax

The latest draft legislation may be an improvement but it still has the whiff of a wealth tax about it. The question remains whether a golden opportunity for simpler and fairer super tax reform has been missed.

Superannuation

Is it really ‘your’ super fund?

Your super isn’t a bank account you own; it’s a trust you merely benefit from. So why would the Division 296 tax you personally on assets, income and gains you legally don’t own?

Shares

Inflation is the biggest destroyer of wealth

Inflation consistently undermines wealth, even in low-inflation environments. Whether or not it returns to target, investors must protect portfolios from its compounding impact on future living standards.

Shares

Picking the next sector winner

Global equity markets have experienced stellar returns in 2024 and 2025 led, in large part, by the boom in AI. Which sector could be the next star in global markets? This names three future winners.

Infrastructure

What investors should expect when investing in infrastructure: yield

The case for listed infrastructure is built on stable earnings and cash flows, which have sustained 4% dividend yields across cycles and supported consistent, inflation-linked long-term returns.

Investment strategies

Valuing AI: Extreme bubble, new golden era, or both

The US stock market sits in prolonged bubble territory, driven by AI enthusiasm. History suggests eventual mean reversion, reminding investors to weigh potential risks against current market optimism.

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.