Bank customers hardly react to different savings interest rates
Published: Thursday, Nov 23rd 2023, 13:50
Retour au fil d'actualité
Differences in the savings interest rates of individual financial institutions rarely prompt bank customers to change their banking relationship. One reason for this is that only a small proportion of customers are even aware of their bank's current interest rates, as a survey by Lucerne University of Applied Sciences and Arts (HSLU) shows.
Interest rates in Switzerland have changed significantly since mid-2022 with the Swiss National Bank's (SNB) significant interest rate hikes, as the "IFZ Retail Banking Study 2023" published by HSLU on Thursday reminds us. In recent months, there have been significant differences in interest rates on savings accounts, but also in the level of fees, for example for basic account and card packages.
In a representative survey conducted by HSLU, most people stated that they would transfer their money to another bank if there was an interest rate difference of 0.5 percentage points. However, only seven percent were aware of the interest rate charged by their main bank. Accordingly, there have been no significant shifts of customer money to date. Often not even the now significant interest rate differences between private and savings accounts are being exploited.
Choice of house bank
In addition, prices and interest rates are still not the only criteria for choosing a bank. Product performance and services continue to play an important role in the choice of bank - accordingly, banks with a one-sided focus on price or interest rates can only attract a limited number of customers.
According to the HSLU study, certain patterns can be identified in the choice of main bank. Raiffeisen banks, for example, attract more people who attach great importance to the brand and value personal advice. In contrast, Postfinance appeals disproportionately to price-sensitive people, while the big banks attract people who pay attention to interest rates. The customer base of the cantonal banks is less clear - which does not make it easy for them to satisfy their customer groups.
Rising interest margins
The rise in interest rates has also boosted banks' interest business this year, as HSLU writes, citing a study of the balance sheets and income statements of 90 banks. According to the study, average interest margins are likely to exceed the 1.3 percent mark again in 2023. The last time Swiss banks' interest margins were at this level was in 2016, after which they fell to a level of 1.1 percent.
Various small banks with total assets of less than 700 million francs, such as Caisse d'Epargne d'Aubonne, Ersparniskasse Affoltern i. E. and Clientis Spar- und Leihkasse Thayngen, have the strongest key figures among the retail banks in the study. These institutions excel with a low cost-income ratio or a high interest margin, for example, but also with above-average capitalization.
©Keystone/SDA
French 
English 
German 
Spanish 
Arabic