AUSTRALIAN bank customers are losing the itch to switch as fewer than one in five want to change banks.

Transaction and saving account users are also reluctant to move financial institutions, with fewer than one in 10 intending to switch.

Comparison website Mozo's latest Bank Switching Index has found about 18 per cent of borrowers intend to switch credit cards and 16 per cent intend to switch home loans.

When it comes to savings and transaction accounts, about 9 per cent have signalled they intend to change institutions.

Mozo spokeswoman Kirsty Lamont says the data shows that few borrowers are prepared to move banking institutions, even though they could often score a better deal.

"It's surprising that more borrowers aren't taking advantage of the low-rates environment to get themselves a better rate on a home loan, particularly while competition is running so hot,'' she says.

"Rates are below 5 per cent and there's never been a better time in recent history to shave thousands of dollars off your home loan by making a quick switch but we are seeing a lot of reluctance from people.''

Lamont says over 80 per cent of home loan customers do business with the big four banks and says better deals can often be found if you shop around.

She also says consumers often think switching is hard work and not worth the trouble.

"People tend to have the attitude that switching is too difficult and it's labour intensive and it's not something people want to spend their weekend doing,'' she says.

"There's a new crop of lenders who have made the process so easy, like online lenders ... you can literally switch using a computer and a postage stamp."

Lara Christensen, 24, from Brisbane, has a transaction account and a credit card, but like most Australians has no intention of switching banks.

"All my family use the same bank and same credit credits and it's about convenience,'' she says. "It's quicker and easier to transfer money to each other."

Roy Morgan research director Norman Morris says there is little evidence to show people are looking to switch their main financial institution.

"People think that it is too much trouble to switch and they are likely to consider that there may not be sufficient gain in switching because all the major players are the same,'' he says.

"The other issue is that the customers of the major banks are already spreading their business around ... they generally hold only 2.5 to three products at any bank out of an average of around 9 to 10 products held in total."

Originally published as Bank clients lose itch to switch