We trust that our financial institution will be there for us when we need a helping hand. Yet in reality, many banks are restricting customer access to key services, according to new research from Pepper Money. And we’re not happy about it.
Pepper Money’s study found 3.6 million Australians, or 18 percent of us, have been turned down for a loan by a financial institution. More than a quarter of these Australians were refused financing because they are self-employed or working part-time. More than half of those rejected Aussies also weren’t aware there are other financing options available to them.
As more Australians opt for flexible working arrangements, Pepper Money said its research shows there’s a growing number of Australians locked out of the country’s financial system and unable to access services and support required to meet their financial goals.
“The big banks have a set criteria for loan applications that not everyone conforms to,” Mario Rehayem, Pepper Money’s managing director of Australian mortgages and personal loans, stated in a company press release. “We don’t expect this to change, though it means a significant number of Australians are missing out.”
Perhaps because financial institutions are unwilling to help so many of us, Australians often have a poor relationship with these businesses. Pepper Money’s research found 42 percent of Australians don’t believe their financial institution understands their financial goals or needs because they focus more on profits than customer service. Sixty-three percent of Australians said they withhold information from their main financial institution, indicating a lack of trust in their provider. One in ten Aussies said they worry about having all their financial details in one place.
“There is a growing disconnect between Australians and financial institutions, which is causing many Aussies to fall through the cracks,” Mr Rehayem said.
At Chase Edwards, we think it’s important for Australians to feel they have someone they can trust with their finances. If you’re feeling disconnected from your bank, we’d love you to give us a call on 1300 854 833. We’ll listen to your financial goals and provide tailored advice to help you reach them. Your financial health check is totally free and you’re under no obligation to use our services, so what have you got to lose?