Westpac rate rise sees customers switch to rival banks

Westpac customers have been switching home loan providers in droves following the firm's recent interest rate increase.

Interest rate increases introduced by Westpac at the close of 2009 has seen the bank's customers seek out deals with other providers, it has been revealed.

Mortgage broker AFG reports that following the firm's 45 basis point hike to its standard variable home lending rate, a ''large proportion'' of business in December came from disgruntled people switching services.

Although the firm has not revealed the specific number of customers who moved, sales manager Mark Hewitt notes: "There are people who are fed up with Westpac and are making a stance."

He adds that while changing banks can be a difficult process when "you feel strongly about something you tend to endure a bit of pain to get your point across".

Indeed, such reports could provide credit card and bank account customers with the impetus to compare accounts in order to seek out a better deal.

Last month, InfoChoice chief executive Shaun Cornelius pointed out that shopping for products away from the big four banks could see consumers access "some terrific deals".

By Bret Clement