You Already Know Payroll Matters - Here’s the Proof

JUNE 2025 | New insights from Spark show just how much of a difference payroll really makes.

For anyone in banking, it’s no surprise that securing a customer’s payroll is a game-changer. It deepens relationships, signals loyalty, and opens the door to more meaningful engagement.

But what does that actually look like in numbers?

We’ve analysed data across mutual banks using the Spark Platform, and the results offer clear, evidence-based insights into why payroll matters so much and how it shapes customer behaviour.

What Counts as a Payroll Customer?

Payroll customers are those receiving consistent, income-style credits - typically over a minimum of four consecutive months. These payments aren’t just regular, they’re predictable, stable, and strongly indicative of income.

Across the Spark mutual bank community, around 45% of customers meet this definition.

They’re More Engaged. More Valuable. More Committed.

The difference in behaviour is clear:

• 65% higher engagement

• 61% greater overall value contribution

• 29% higher uptake of key products (i.e. loans and term deposits)

• More likely to make the account their primary banking relationship – think MFI!

On average, payroll customers contribute $1,369 in value - compared to just $847 for non-payroll customers.

Their average engagement score also jumps from 5.78 to 9.25, reflecting a much deeper, more active relationship with the bank.

Key Takeaway: Payroll is one of the strongest early indicators of customer potential. Make salary switching part of your onboarding process to lock in long-term value from day one.

They Show Higher Product Adoption

Payroll doesn’t just indicate commitment - it’s also a gateway to deeper product relationships.

33% of payroll customers hold a key product compared to 26% of non-payroll customers

Whether it's a home loan, credit card, or term deposit, these customers are more likely to take up products that build long-term value.

Key Takeaway: When payroll kicks in, use it as a trigger to launch follow-up journeys that promote the next best product based on the customer’s profile and needs.

They’re Less Likely to Leave

One of the clearest signals of loyalty? Payroll.

Payroll customers have an annual churn rate of just 2.1%, compared to 5–6% across the broader customer base.

Setting up payroll takes effort, and once done, most customers aren’t eager to go through the process again - this creates a natural stickiness.

Key Takeaway: Use payroll as a loyalty indicator in your retention and churn modelling. Declining payroll activity can be an early warning sign, so use it to proactively re-engage.

Payroll Proves They’re Here to Stay (and Grow)

For those working in mutual banking, this isn’t news but just confirmation. Payroll is one of the clearest indicators that a customer is committed, active, and open to deeper engagement.

The difference is measurable. And the opportunity? Ongoing.

Ready to put your payroll data to work?

Chat with the team at Spark about tracking payroll and triggering smart, timely journeys that deepen engagement and drive results.