1 Introduction
2 Literature
3 Survey
3.1 Data
3.2 Background information on banking products
3.3 The propensity to switch by banking product
3.4 Discussion of barriers
4 Propensity to switch: regressions
4.1 Methodology
Current account | Savings account | Mortgage loan | Revolving credit | |
---|---|---|---|---|
Male
| 0.10 | −1.27 | 1.83 | −1.23 |
(2.10) | (2.39) | (4.13) | (9.56) | |
Between 35 and 44
| −0.10 | 1.49 | −12.79* | 18.81 |
(3.43) | (3.93) | (6.64) | (18.05) | |
Between 45 and 54
| 1.59 | 1.08 | −9.83 | 24.92 |
(3.42) | (3.92) | (6.89) | (19.17) | |
Between 55 and 64
| −4.05 | −8.02** | −25.85*** | −7.21 |
(3.47) | (3.97) | (7.01) | (16.38) | |
65 and over
| −15.10*** | −17.86*** | −27.08*** | 7.44 |
(3.33) | (3.79) | (7.15) | (16.87) | |
Education: bachelor degree or higher
| 4.76** | 4.50* | −6.84* | −2.18 |
(2.08) | (2.34) | (3.76) | (8.14) | |
Income category
| −0.17 | 0.40 | 2.23*** | −1.94 |
(0.40) | (0.44) | (0.79) | (1.69) | |
Degree of urbanisation
| 1.40* | 0.92 | 1.03 | 6.65** |
(0.74) | (0.81) | (1.36) | (3.32) | |
Responsible for household finances
| 1.81 | 0.85 | 0.74 | 25.36** |
(2.11) | (2.44) | (4.02) | (9.97) | |
Not much benefit of switching
| −5.02*** | −1.21 | −2.27 | −7.24* |
(0.95) | (1.03) | (1.74) | (3.94) | |
Recent switching experience
p
| 47.52** | 23.58*** | −11.90 | 6.98 |
(18.58) | (5.84) | (13.19) | (13.88) | |
Older switching experience
p
| 1.97 | 9.60*** | 16.07*** | 12.43 |
(2.42) | (2.64) | (3.84) | (8.82) | |
Other switching experience
p
| 3.96* | −1.48 | 8.25** | −3.96 |
(2.35) | (2.63) | (3.54) | (8.11) | |
Customer loyalty
p
| −6.79*** | −7.87*** | −4.33*** | 0.06 |
(0.97) | (1.04) | (1.52) | (3.67) | |
Number of banks
| 0.57 | 3.83*** | 1.94 | 6.69 |
(1.01) | (1.15) | (1.78) | (5.26) | |
Filed a complaint
| 14.49*** | 17.19*** | −0.49 | 7.14 |
(3.40) | (3.85) | (5.60) | (12.35) | |
Knowledge of banking product
p
| −1.41 | 9.25*** | 1.75 | 3.59 |
(2.00) | (2.49) | (4.65) | (8.81) | |
Knowledge of other banking products
p
| 8.94** | −9.76** | −21.14*** | 4.25 |
(4.25) | (4.60) | (7.79) | (14.18) | |
Knowledge of switching service
| −0.31 | |||
(1.23) | ||||
Knowledge of switching service * Recent switching experience current account
| −23.30*** | |||
(7.88) | ||||
Knowledge of Deposit Guarantee Scheme
| 5.36* | |||
(2.76) | ||||
Perceived control over switching
| 5.87*** | 4.33*** | 2.20 | 5.64 |
(1.23) | (1.32) | (2.25) | (4.50) | |
Degree to which switching is unpleasant
| 0.25 | 0.08 | −2.95 | 8.53* |
(1.11) | (1.22) | (1.96) | (4.45) | |
Injunctive social norms
| 5.54*** | 2.23 | 0.67 | 0.81 |
(1.41) | (1.55) | (2.25) | (5.59) | |
Perceived switching behaviour of others
| 1.52 | 2.15 | −0.66 | 0.43 |
(1.23) | (1.37) | (2.07) | (4.32) | |
Jointly owned banking product
p
| 2.18 | 1.52 | −3.65 | 20.22** |
(1.96) | (2.24) | (4.19) | (9.79) | |
Constant
| −27.45*** | −32.07*** | −6.81 | −123.32*** |
(9.42) | (10.13) | (16.08) | (41.05) | |
Observations | 2086 | 1889 | 1087 | 181 |
4.2 Results
4.3 Robustness
Current account | Savings account | Mortgage loan | Revolving credit | |
---|---|---|---|---|
Male
| −1.25 | −3.25 | 5.55 | 3.84 |
(2.29) | (2.60) | (4.36) | (11.53) | |
Between 35 and 44
| −0.48 | 1.55 | −9.98 | 13.61 |
(3.70) | (4.34) | (6.86) | (26.07) | |
Between 45 and 54
| 0.72 | 0.67 | −9.13 | 23.88 |
(3.61) | (4.18) | (7.15) | (26.95) | |
Between 55 and 64
| −5.49 | −8.01* | −23.74*** | −12.10 |
(3.73) | (4.35) | (7.15) | (24.41) | |
65 and over
| −15.52*** | −18.14*** | −25.74*** | −1.36 |
(3.58) | (4.15) | (7.39) | (25.23) | |
Education: bachelor degree or higher
| 4.38* | 3.77 | −7.66* | −8.76 |
(2.27) | (2.56) | (4.08) | (10.36) | |
Income category
| −0.11 | 0.42 | 1.33 | −2.11 |
(0.43) | (0.48) | (0.85) | (1.92) | |
Degree of urbanisation
| 1.78** | 1.04 | 0.79 | 6.76* |
(0.81) | (0.88) | (1.47) | (3.82) | |
Responsible for household finances
| 1.27 | 1.54 | 1.11 | 23.74** |
(2.29) | (2.65) | (4.28) | (10.97) | |
Not much benefit of switching
| −4.94*** | −0.36 | −0.68 | −6.59 |
(1.11) | (1.22) | (2.06) | (4.57) | |
Recent switching experience
p
| 41.27* | 24.23*** | −13.24 | 7.55 |
(21.51) | (6.28) | (16.00) | (14.13) | |
Older switching experience
p
| 2.20 | 6.81** | 17.63*** | 7.45 |
(2.60) | (2.85) | (4.06) | (11.71) | |
Other switching experience
p
| 3.98 | 0.70 | 7.56** | 1.59 |
(2.47) | (2.80) | (3.75) | (10.25) | |
Customer loyalty
p
| −5.06*** | −6.49*** | −2.98* | 2.28 |
(1.07) | (1.16) | (1.67) | (4.41) | |
Number of banks
| 0.10 | 2.11* | 2.82 | 5.28 |
(1.10) | (1.28) | (1.97) | (5.53) | |
Filed a complaint
| 14.59*** | 16.77*** | 2.07 | −14.03 |
(3.54) | (4.03) | (5.81) | (18.89) | |
Knowledge of banking product
p
| −1.68 | 10.58*** | 3.33 | 13.77 |
(2.14) | (2.68) | (4.80) | (11.34) | |
Knowledge of other banking products
p
| 10.71** | −9.51* | −18.92** | 0.65 |
(4.53) | (5.03) | (8.06) | (18.33) | |
Knowledge of switching service
| −0.77 | |||
(1.33) | ||||
Knowledge of switching service * Recent switching experience current account
| −21.49** | |||
(9.49) | ||||
Knowledge of Deposit Guarantee Scheme
| 5.99** | |||
(3.05) | ||||
Perceived control over switching
| 7.02*** | 5.47*** | 2.22 | 3.39 |
(1.42) | (1.57) | (2.59) | (5.43) | |
Degree to which switching is unpleasant
| 0.37 | 0.13 | −1.44 | 8.55 |
(1.26) | (1.40) | (2.22) | (5.57) | |
Injunctive social norms
| 5.28*** | 1.66 | 1.78 | 6.47 |
(1.60) | (1.77) | (2.51) | (6.51) | |
Perceived switching behaviour of others
| 0.67 | 1.66 | −2.10 | −4.19 |
(1.40) | (1.57) | (2.23) | (5.55) | |
Jointly owned banking product
p
| 3.46 | 1.82 | −0.01 | 31.78*** |
(2.14) | (2.46) | (4.54) | (11.37) | |
Constant
| −31.50*** | −36.11*** | −23.38 | −125.64** |
(10.61) | (11.44) | (18.08) | (51.44) | |
Observations | 1609 | 1447 | 846 | 139 |
5 Effectiveness of policies to increase (the threat of) switching
5.1 Attracting new banks
Deposit insurance text | Certainly not | Probably not | Neutral | Probably yes | Certainly yes | Mean score | N | |
---|---|---|---|---|---|---|---|---|
Dutch bank | no | 8% | 25% | 33% | 28% | 7% | 3 | 564 |
Foreign bank | no | 26% | 39% | 21% | 13% | 1% | 2.2 | 577 |
Difference | −18% | −15% | 12% | 15% | 6% | 0.8*** | ||
Dutch bank | yes | 7% | 21% | 27% | 35% | 10% | 3.2 | 536 |
Foreign bank | yes | 22% | 31% | 23% | 19% | 5% | 2.5 | 522 |
Difference | −15% | −11% | 5% | 16% | 5% | 0.7*** |
5.2 Increasing knowledge of the switching service
Average switching propensity (in %) | Percentage of respondents who report a switching propensity of… | N | |||
---|---|---|---|---|---|
…0%. | …100%. | … ≥ 50%. | |||
All respondents | |||||
Current situation | 6.8 | 67.1 | 0.8 | 6.7 | 2206 |
In case of account number portability after explanation switching service | 13.3*** | 58.1 | 2.3 | 13.7 | 2205 |
People unaware of the switching service | |||||
Current situation | 5.8 | 70.4 | 0.6 | 5.6 | 895 |
After explanation of switching service | 7.0 | 66.4 | 0.6 | 6.1 | 895 |
After explanation and account number portability | 10.7*** | 62.9 | 1.3 | 10.8 | 895 |
People unaware of the content of the switching service | |||||
Current situation | 8.0 | 60.9 | 0.6 | 8.3 | 654 |
After explanation of switching service | 8.9 | 56.9 | 0.5 | 8.4 | 654 |
After explanation and account number portability | 15.8*** | 48.9 | 1.8 | 15.0 | 654 |
People aware of the content of the switching service | |||||
Current situation | 7.0 | 68.9 | 1.4 | 6.7 | 657 |
In case of account number portability after explanation switching service | 14.4*** | 60.7 | 4.1 | 16.2 | 656 |