In the 6 months to August 2013, the highest satisfaction level for each of the Big Four banks was among those customers earning less than $35k p.a. This group makes up more than half (54%) of the population but accounts for only 27.8% of the total value of the market for financial services. The best performer among the Big Four in this lower income group is the CBA with 83.6% satisfaction. The CBA also leads the Big Four in the $35k to $70k segment but falls back in the higher income groups.
Westpac leads the satisfaction in the $70k to $100k segment also in the $130k+group. The ANZ is the leader in the $100k to $130k segment.
Bank Customer Satisfaction by Personal Income
Source: Roy Morgan Research Consumer Single Source, March – August 2013, n= 17,860
In August, the CBA maintained its overall lead in customer satisfaction with 81.1% (up 0.2% points), still clearly ahead of second placed NAB on 79.1% (up 0.2% points), Westpac 78.7% (up 0.4% points) and ANZ 78.0% (down 0.2% points).
Over the past 12 months the biggest improver was the ANZ (up 4.1% points), followed by Westpac (up 4.0% points) and CBA (up 3.3% points). The NAB has lost some ground over the past year, down 0.7% points.
The major reason for the big improvement for three of the Big Four was the increase in satisfaction among their home loan customers as a result of the rate reduction over the year. The reason the NAB didn’t improve over the last 12 months was due to the fact that they didn’t capitalise on the reduction in the home loan rate as well as their competitors.
The home loan customers of each of the major bank, despite the interest rate declines, remain less satisfied than the non-home loan customers.
Consumer Banking Satisfaction
Source: Roy Morgan Research Consumer Single Source, August 2013, Average 6 monthly sample for Big Four banks n= 18,416
Business Banking Satisfaction
Satisfaction with the business customers of the Big Four banks showed some improvement in August, increasing by 0.5% points from July to 64.8%. Over the last 12 months the satisfaction of business customers has only improved by 1.4% points, putting them further behind personal customers’ satisfaction which increased by 3.0% points. This leaves the business banking customers’ satisfaction of the Big Four 14.9% points behind their personal customers.
Westpac remains the clear leader among the majors with 67.9% satisfaction, followed by the CBA (65.0%), NAB (63.6%) and ANZ (62.6%). Westpac is also the leader among micro and medium/large businesses while ANZ is the top among small businesses.
Business Banking Satisfaction
Source: Roy Morgan Research Business Single Source, August 2013, Average 6 monthly sample size n= 6,781
Norman Morris, Industry Communications Director, says:
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“Although the satisfaction with banks among their personal customers remains at historically high levels, it appears however that the more valuable higher income individuals and business customers have much lower satisfaction levels than the majority of customers and yet they are the ones with the greatest profit potential.
“The banks will need to increase their focus on these groups as they are more likely to face increased competition from specialist banks and other financial institutions that will ‘cherry pick’ these high value customers.
“Our research shows that around 400,000 people and over 200,000 businesses intend to switch their main financial institution (MFI) over the next twelve months. This indicates a readiness to moving banks if the need arises. In this situation, the key focus of the banks will be the need to retain and attract the customers with the greatest potential rather than letting them just drift off.”
Roy Morgan Research
Roy Morgan Research is the largest independent Australian research company, with offices in each state of Australia, as well as in New Zealand, the United States and the United Kingdom. A full service research organisation specialising in omnibus and syndicated data, Roy Morgan Research has over 70 years’ experience in collecting objective, independent information on consumers.
In Australia, Roy Morgan Research is considered to be the authoritative source of information on financial behaviour, readership, voting intentions and consumer confidence. Roy Morgan Research is a specialist in recontact customised surveys which provide invaluable and effective qualitative and quantitative information regarding customers and target markets.
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