Share of Wallet (SOW) Explained: A 2025 Guide for Australian Consumers

In 2025, Australian consumers are more financially savvy than ever, but there’s a banking term that’s still flying under the radar: Share of Wallet (SOW). While it might sound like another bit of industry jargon, SOW is a powerful concept that shapes your banking experience, affects the deals you’re offered, and could even save (or cost) you money. Let’s demystify SOW and explore how understanding it can put you in the driver’s seat of your financial journey.

What is Share of Wallet, and Why Does It Matter?

Share of Wallet (SOW) is a metric used by banks, insurers, and retailers to measure how much of your total financial business they control compared to their competitors. For example, if you have three different bank accounts but only keep your savings with Bank A, Bank A’s share of your wallet is limited. If you also move your credit card, home loan, and investments to Bank A, their SOW increases.

• For banks: Higher SOW means more revenue per customer and deeper relationships.
• For consumers: SOW impacts what products, rates, and perks you’re offered. The more you concentrate your business, the more leverage (and sometimes risk) you may have.

With the Australian Competition and Consumer Commission (ACCC) pushing for greater transparency and competition in 2025, SOW is now in the spotlight. Banks are using it to tailor offers, while consumers are learning how to use it to negotiate better deals.

How Banks Use SOW in 2025: More Than Just Cross-Selling

Banks have always tried to “cross-sell”—offering you multiple products to boost loyalty and profits. In 2025, with new open banking standards and AI-driven analytics, SOW has become even more granular and targeted. Here’s how:

• Personalised Offers: If a bank sees you have a home loan elsewhere but use their credit card, you might be offered a refinance deal with discounted rates.
• Bundled Products: Expect more packages combining savings, insurance, and investment products, especially for Gen Z and Millennials seeking simplicity.
• Retention Strategies: With ACCC rules making it easier to switch providers, banks are doubling down on loyalty programs and exclusive perks to keep you in their ecosystem.

Recent case: In early 2025, a major Australian bank launched a ‘total relationship discount’—offering up to 0.30% off home loan rates for customers with at least three products under their umbrella. This is SOW in action: the more you consolidate, the more you’re rewarded.

How to Use SOW to Your Advantage (and Avoid the Traps)

Understanding SOW lets you play the field smartly. Here’s how Australians can make SOW work for—not against—their wallets:

• Leverage Your Value: When negotiating a loan or credit card, highlight your broader relationship with the bank. Ask for better rates or waived fees based on your total business.
• Shop Around: Don’t assume loyalty always pays. In 2025, banks are required to display standard rates and fees more transparently, making it easier to compare and switch.
• Avoid Over-Concentration: Spreading products across different institutions can reduce risk. For instance, government guarantees for bank deposits still cap at $250,000 per ADI—relevant if you’ve built up significant savings.
• Monitor Rewards: Bundled banking can unlock perks, but always check the fine print for hidden fees or product tying that may not suit your needs.

Real-world example: Sarah, from Melbourne, consolidated her home loan, savings, and car insurance with one bank in late 2024. She received a loyalty discount, but also noticed her bundled insurance was pricier than standalone policies elsewhere. By understanding her SOW, Sarah negotiated a better rate, then shifted her insurance to a competitor to maximise overall value.

The Future of SOW: Open Banking and Consumer Empowerment

With the Consumer Data Right (CDR) expanding in 2025, Australians have more control over their data and can switch providers with unprecedented ease. This makes SOW a two-way street: banks will try harder to win your business, but you hold the cards.

• Open Banking Tools: New apps let you see your entire financial footprint and calculate your SOW, empowering smarter decisions.
• Greater Competition: Neobanks and fintechs are using SOW analytics to disrupt traditional banking and offer hyper-personalised products.

Bottom line: SOW is no longer just a bank metric—it’s a consumer tool for maximising value, negotiating power, and financial wellbeing in 2025.