The main cause of the drop in consumer satisfaction was the ‘out-of-cycle’ mortgage rises in February, following the Reserve Bank’s decision to keep the cash rate unchanged. It appears that the first bank to make an upward movement in their home loan rate suffers the greatest negative impact on customer satisfaction because of the widespread publicly it attracts. On this occasion it was the ANZ who increased their home loan rate first and as a result their home loan customers showed the largest drop in satisfaction among the home loan customers of the big four. This was despite the fact that the increase in the ANZ rate was the lowest of the big four. It is worth noting that Westpac were the next to announce their home loan rate increase and as a result they also showed a significant drop in the satisfaction level of their home loan customers.
Consumer Banking Satisfaction
Source: Roy Morgan Research Consumer Satisfaction Survey, June 2010 – Feb 2012 Dec 11, average 6 monthly sample n = 25, 154.
For business banking customers, the results show that all major banks still lag well behind personal customers in their satisfaction rating with only 66.3% in February 2012 compared to 79.3% for personal customers. This big disparity between the two groups is likely to attract increasing attention by banks as customers are likely to feel more predisposed to switching banks if their feel that they are not getting a good deal.
Business Banking Satisfaction
Source: Roy Morgan Research Business Banking Survey, June 2010 – Feb 2012, average 6 monthly sample n = 6,859, **7 months to April 2011.
Norman Morris, Industry Communications Director, Roy Morgan Research, says:
“While there are some encouraging signs of satisfaction improvements by banks among their business customers it is worth noting that there is a long way to go for all banks in order to catch up with their performance in consumer banking. With the potential for profitable growth becoming much less among consumers, there is likely to be increased competition for growth in the business market, with the result that more focus will need to be on understanding the needs of business customers.
“A major area of weakness seen by business customers across all banks is that they do not maintain regular contact with them and do not follow developments in their industry. In future they will need to focus more on the needs and concerns of their customers and show greater interest in what is obviously a more complex market compared to consumer banking.
“It is worth noting that the top performing big four bank for business customers is Westpac and that it is in fact the lowest performer among the big four in consumer banking.”
The detailed Roy Morgan ‘Business Satisfaction – Business Banking Report in Australia’ report includes ANZ, Bank of Queensland, Bankwest, Bendigo Bank, Citibank, Commonwealth Bank, Macquarie Bank, National Australia Bank, St George Bank, Suncorp and Westpac.
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