A new survey has shown that many Australians are still banking where their parents did, a habit that could be affecting their financial health. The survey, commissioned by the Customer Owned Banking Association (COBA) and executed by Pureprofile in July 2025, probed 1004 Australian adults. The data reveals that 33% had their first bank account opened by their parents, and 20% later opted to use the same bank.

This suggests that 53% of Australians chose their bank due to family influence. Even more alarming, 61% have never changed their primary bank.

When People Do Change Banks, It’s for Value

Of the 39% who have switched banks at some point in time, nearly all did so to satisfy value-based motivations. The survey revealed that 53% moved to access better fees or interest rates, while 20% switched due to poor customer service.

Though a smaller percentage, these individuals demonstrate a willingness to make a change when there are financial benefits.

Generational Habits May Be Limiting Modern Financial Outcomes

Longitudinal research confirms that first encounters with banking colour future choices far beyond childhood. Once a parent opens a savings account in a local branch, that same institution tends to follow its owner for decades, even as life circumstances shift. Salary increases, family expenses, and new financial goals often outpace the products, fees, and technology that the original bank still offers. Yet evidence shows that a large majority of Australians still renew mortgages, apply for lines of credit, and park deposits with the same provider they picked when they were ten. The net effect is a growing pool of customers who pass up better interest rates, advanced digital tools, or tailored lending packages now common elsewhere.

Consumers Are Missing Out on the Bigger Picture 

Although there are many alternative lenders and fresh banking options appearing in Australia, the predominately investor-owned banks remain as the most concern and focus for the majority of Australians. These banks are located at various shopping centres or at convenient street corners; however, just because they are easy to access does not mean you should choose them. 

With the growing trends of customer-owned banks and digital lenders that offer more favourable terms, people may not know about such competitive products that are already available. 

Inflexible banks can translate to higher fees or fixed features for the user, or even fewer options to select from that reduce flexibility, especially when financial situations or life goals change. 

For Every Investor, One Bank Doesn’t Fit All 

While speaking with a single bank may sound simple, given the set-it-and-forget-it approach, it proves to be deeply costly for long-term borrowers or real estate investors who wish to expand their portfolio of properties. Each bank has its own set of rules for lending, risk levels, and product features.

Not comparing lenders can lead to borrowers being stuck with:

* Cap on borrowing

* Limited options for loan structuring

* Increased repayment amounts

* Missed chances for refinancing or restructuring

In a flexibly tailored product environment, having access to lending strategies is crucial.  At OmFinancials, we help our clients adapt from outdated banking habits to informed strategic lending decisions. With 50 lenders at your disposal, we ensure our clients are not shackled by tradition but are empowered by choice. For clients aiming to build a property portfolio or requiring better loan structures, reach out to 0478 876 967 or book your strategy call here. Our team expertly aids through tailored lender comparisons, regular reviews, and long-term financial strategies aligned with client ambitions.