A high percentage of margin lending clients may be looking to add or change providers in the new year, according to new research by Investment Trends released this week.
A third of margin lending clients were interested in adding another account or leaving their current provider this year, according to the 2006 Margin Lending Report.
Overall client satisfaction had risen in the past year, with a 75 per cent increase in clients giving their provider a 'very good' rating, up from 16 per cent in 2005 to 24 per cent in 2006. "Although we note that satisfaction is generally rising in all areas of the market we research which is really a function of this prolonged bull market," Investment Trends director Mark Johnston said.
Around 11 per cent had left a provider in the past 12 months, with more than half leaving due to accessing better features, obtaining a better price, or poor service.
"Often both were required to trigger a move," "Common drivers that contributed to a very positive experience were good communication, prompt service, and personal service," Johnston said.
"The most common reasons given by clients who were very unhappy were mistakes, lack of communication and lack of personal service."
The research showed that the majority of margin loan clients shopped around before choosing a provider with 69 per cent of planner directed clients and 62 per cent of direct clients considering more than one provider before making their decision.
The number of margin lending accounts was 157,000 in September, according to the Reserve Bank, and the average loan size was $166,000 - up almost 25 per cent on the preceding year.
Commsec and Macquarie were brand leaders with Commsec's key strength being its integration with the online broker.
