Blame the bank customer

Banks profit first

Profiteering behaviour by banks is allowed to happen by customers unwilling to change.  Banks in Australia increased margins, increased fees and profited during the financial crisis.  This put increased pressure on small business.  Westpac talked about banana smoothies while redundant workers with a mortgage could not afford milk.  This most profitable bank is also one with low customer service.  When interviewed, Westpac CEO Gail Kelly explains the pressure she is under while collecting a multi-million dollar salary. The government gave the banks a "free kick" by guaranteeing deposits - this has now meant mortgage business has been consolidated in banks and there is reduced competition.

Education

There should be more emphasis on financial literacy in school.  What is point of learning about imaginary numbers and algebra in maths classes without learning tools to balance personal expenses?

Customers are lazy

Each household pays an average $11.50 a week - just in fees. The average wage earner works half an hour a week to pay bank fees.  Despite this, customers do little to investigate switching their home loans.  Customers say that "banks are all the same", which is untrue and an excuse.  One bright note is the class action against bank fees.

Solutions

1. The government leglislate that mortgage providers send a letter to each mortgage customer annually.  The customer can tick-the-box to have their mortgage transferred to another bank.  This is a similar reform to the one that was made for superannuation.
2. Legislated limits on exit, penalty, and deferred established fees charged when customers switch banks.
3. Shop around, negotiate and change banks!