According to the research, 42 per cent of Australians feel their main financial institution does not understand their goals or needs.
“The research shows there is a growing disconnect between Australians and financial institutions, which is causing many Aussies to fall through the cracks,” said Mario Rehayem, the managing director of Australian mortgages and personal loans at Pepper Money.
Furthermore, 63 per cent of Australians are withholding information from their main financial institution, with around 10 per cent concerned about having all of their information in one place.
“There is an element of trust that is extremely important when working with consumers on their finances,” Mr Rehayem said.
“What this research really shows is that there is a clear disconnect between Australians and the financial institutions that operate to ‘serve them’, leading to a significant group of Australians being underserviced and potentially getting lost in the system.”
Loan approvals were one of the areas in which Australians getting ‘lost’ was evident, with 18 per cent of Australians saying they had been knocked back for a loan from their financial institution, and 54 per cent of these people saying they were unaware of other options for accessing loans.
“We have always understood the there is a number of Australians who could not access loans due to being rejected by financial institutions, and our recent research shows how big this number is,” Mr Rehayem said.
“We want to educate Aussies about all the options available to them and for them to know that a no from a big bank, doesn’t have to be the end of the line for them.”