Cheat on Your Bank

‘Bank error in your favour.’

It’s a quaint line from Monopoly, but in the real world, those errors almost never flow to the customer. They usually flow the other way.

Source: : Monoploy

The latest example? ANZ.

This week, the bank agreed to a $240 million penalty with ASIC — the largest ever for this type of breach — after a string of ‘errors’ and failures that cost taxpayers and customers dearly.

The biggest blunder involved a $14 billion bond sale for the government in April 2023.

ANZ was the ‘duration manager’ for that one. Tasked with ensuring the pricing went smoothly.

Instead, in a last-minute scramble, ANZ’s traders dumped tens of thousands of contracts into the futures market.

That flood of selling pushed bond prices lower and interest rates higher, costing taxpayers an estimated $26 million in extra payments over the life of the bonds.

ANZ pocketed nearly $10 million in trading profits plus its $2.8 million management fee for its troubles.

ASIC chair Joe Longo summed it up bluntly:

‘Objectively it wasn’t intentional, but it was certainly incompetent… So far as the unconscionable conduct was concerned, it was clearly grubby.’

And that wasn’t the end of it. ASIC also filed against ANZ for:

• Overstated bond-trading volumes by billions to regulators to boost its chances of winning future contracts.
• Wrongly withheld bonus interest on tens of thousands of savings accounts.
• Charged fees to thousands of deceased customers.
• Dragged its feet on hardship applications.

‘Time and time again, ANZ betrayed the trust of Australians,’ concluded Longo.

Trust? I don’t know a soul who would trust a banker as far as they could kick them.

Against this backdrop, ANZ has announced 3,500 job cuts — a restructure to cover the cost of its executives’ recklessness.

If ever there was a reminder to rethink your loyalty to your bank, this is it.

Australians are loyal (for no reason)

Despite scandals, poor service, and costly mistakes, Australians rarely make the switch.

In 2023, the ACCC found that only 11% of Australians had moved banks in the past three years.

Even when people shop around, they often stop short of switching. Roughly half of those who researched alternatives didn’t follow through.

That’s often due to fears about missing payments or losing access to services. Or simply because it’s perceived as complicated and put on the procrastination list.

However, as the ACCC found, this stickiness comes at a cost. Banks know most customers won’t leave, which weakens competition… and the effort they will put in to keeping your dollars.

With another rate cut likely before Christmas, now’s a good time to make the change.

The truth is switching is easier than ever, and the potential gains can be bigger than you expect.

The Financial Case for Switching

If you haven’t reviewed your banking setup in years, you could be leaving thousands on the table. Let’s look at some of the benefits:

1. Mortgage Savings

The average Australian can save $403 a month on their mortgage simply by refinancing or switching lenders. Over a year, that’s close to $5,000 back in your pocket.

The big banks have been repeatedly criticised for failing to pass on savings from lower funding costs to borrowers. Smaller lenders and digital-first banks often offer more competitive rates.

2. Lower Fees

A $5 monthly account fee doesn’t sound like much — until you realise it’s $60 a year for the privilege of accessing your own money.

Add ATM fees, overdraft charges, and foreign-transaction costs, and you could be handing over hundreds annually.

3. Better Interest Rates on Savings

Banks often keep savings rates low, betting that customers won’t notice. But newer entrants frequently offer rates 50–100 basis points higher.

On $50,000 in savings, that’s an extra $500 per year, for little effort.

4. Stronger Security

Scams and fraud are rising fast. Darkweb sites have so many Australian credit card numbers that they only charge $38 a pop. A modern bank should offer:

• Numberless cards
• Robust authentication and AI fraud detection.
• Instant card locking in the app.
• Confirmation of Payee

If your bank doesn’t, you could be exposed.

5. Useful Digital Tools

Today’s best banking apps aren’t just for payments anymore; they’re financial management platforms. Features like:

• Auto Spending categorisation.
• Thematic savings buckets
• Round-up transfers into savings.
• Real-time budgeting dashboards.

These tools make it easier to hit financial goals or track when one of your subscriptions raises its price again.

Breaking Free From Inertia

The ANZ case is just one example in a long line of scandals. I personally left ANZ many years ago after poor customer service and haven’t looked back.

But it’s not just ANZ. From Royal Commissions to ongoing ASIC actions, the story is consistent: the big banks put themselves first.

Staying in your old bank out of habit costs you more than you think.

Yes, switching requires effort. But today’s account-switching services make the process far smoother. Direct debits, salary deposits, and bill payments can often be transferred automatically.

Australians have a reputation for being sticky. But in this market, loyalty isn’t rewarded. Competition is.

If you’ve been with the same bank for years, it’s time to ask some hard questions about why you’re still there.

If the answer isn’t clear, then the solution is simple.