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




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.

Suggested Citation

  • Baumann, Chris & Elliott, Gregory & Burton, Suzan, 2007. "Share of wallet in Australian retail banking an empirical study with implications for practice and research," Journal of Financial Transformation, Capco Institute, vol. 21, pages 32-38.
  • Handle: RePEc:ris:jofitr:0943

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    More about this item


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

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing


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