Banks are being warned off ignoring online comparison sites, with a study finding the lucrative 18-34 year old market are the most likely to search for better banking deals.
The study by online comparison site RateCity also found that Gen Y is more likely to switch financial institutions than other age groups.
Alex Parsons, chief executive of RateCity, said: “Financial institutions can't ignore the online comparison industry or they will face losing market share and miss out on an important source of banking customers.”
The age group is also more actively shops for and compares insurance offers, with 38% shopping around before they decide on an insurance company.
The insights are based on users of RateCity.com which also found that women are more likely to compare and apply for financial products on the site than men, 63% compared to 37%.
“In the US and UK, the financial services industry has been revolutionised by comparison sites and Australia won’t be far behind. MoneySupermarket in the UK for instance, is valued at almost £1 billion ($1.46 billion) and Bankrate in the US has announced an IPO with a likely value of over US$1.5 billion ($1.42 billion).”