Share of wallet in Australian retail banking an empirical study with implications for practice and research
AbstractPrevious research has investigated the determinants and consequences of customer loyalty, but in banking, a critical yet often neglected measure is the customer’s ‘share of wallet’ (SOW). Since some customers are more active in either investments or loans, the study, based on a survey of 1,951 retail banking customers, models SOW separately in terms of deposits and debts/loans. The results suggest that approximately 25% of the variance in share of wallet can be predicted, in particular by demographic factors such as age, income and a customer’s location. The typical customer with growth potential for deposits is found to be male, aged 35-65, has a high income and a university degree, and lives in a city area. In contrast, factors such as customer satisfaction, affective attitude and perceived service quality were not significant unique predictors of SOW. Implications for bankers and researchers are discussed.
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Bibliographic InfoArticle provided by Capco Institute in its journal Journal of Financial Transformation.
Volume (Year): 21 (2007)
Issue (Month): ()
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Share of Wallet; Customer Loyalty; Retail Banking; Demographic factors;
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