- New innovative service, Stay or gohelps consumers get the best deal with their bank by avoiding the hassle of switching
- The service has unlocked $1.5 billion in annual savings available to 6.1 million Australian credit card customers
- Stay or Go is now working with banks to support home loan customers to keep a competitive deal without switching
New research from an Australian fintech startup Stay or go found that 1 in 2 credit card customers (6.1 million in total) would benefit from simply switching to a more suitable product at their current bank. It is estimated that maintaining their current product costs these customers $1.5 billion each year.
A study based on a sample of 5,000 people Stay or go customers identified three groups of consumers who could benefit the most:
- Consumers who are struggling to pay their balance in full – by switching to their bank’s low-rate or no-interest product, these consumers can save an average of $1,200 over 3 years.
- Big spenders who pay off their balance in full – by switching to their bank’s most eligible rewards card, these consumers can earn nearly $1,000 in additional rewards on average over 3 years.
- Thrifts who pay their balance in full – by switching to one of their bank’s low-fee cards, these consumers can save an average of nearly $500 over 3 years.
Big bank customers benefit the most: 64% would benefit from switching to one of their bank’s more suitable credit card products. Stay or Go founder and CEO Anthony Fitzgerald explains: “Banks continue to launch innovative new products, but existing customers rarely consider transferring money and many don’t know they can. If you’ve had the same credit card for more than a few years, there’s a good chance your bank now has a better option.”
The findings follow the launch of an innovative new service called Stay or Go, which helps consumers get the best deal from their bank by avoiding the hassle of switching.
“Most consumers don’t want to switch banks, but until now they’ve had no support when negotiating a better deal with their bank. Stay or Go solves this problem.
“It only takes 60 seconds for credit card customers to see if your bank has other products to consider and compare them to leading offers from across the market. You’re presented with a very simple summary of how much you can save, making it easy to decide whether to ‘stay’ with your current bank or ‘switch’ to a more compelling offer from a new provider.
“If you decide to transfer money to one of your bank’s more suitable credit cards, Stay or Go simplifies the process. It’s important to note that you generally won’t have to spend time reapplying for credit, and you won’t have to worry about damaging your credit rating.’ said Anthony.
Following the success of Stay or Go in the credit card market, where they have already helped more than 50,000 consumers get the best deal, the solution is expanding to support home loans, personal loans, car loans and deposits. In fact, Stay or Go can already be used to compare most of these products.
“With rapidly rising interest rates and an estimated $375 billion in ultra-low pandemic fixed-rate home loans maturing in 2023, we will soon launch a new service to support consumers in negotiating a competitive home loan deal with by their current bank. Equally, the service will help banks improve service and retain home loan customers.” said Anthony.