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Share of wallet in Australian retail banking an empirical study with implications for practice and research

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  • Baumann, Chris

    () (Macquarie University)

  • Elliott, Gregory

    () (Macquarie University)

  • Burton, Suzan

    () (Macquarie University)

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    Abstract

    Previous 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 Info

    Article provided by Capco Institute in its journal Journal of Financial Transformation.

    Volume (Year): 21 (2007)
    Issue (Month): ()
    Pages: 32-38

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    Handle: RePEc:ris:jofitr:0943

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    Related research

    Keywords: Share of Wallet; Customer Loyalty; Retail Banking; Demographic factors;

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