The satisfaction level of the personal customers of banks reached 81.3% in November, a marginal increase from 81.2% in October, but enough to achieve the highest level in the 18 years of this survey. The Big Four banks scored 79.9% satisfaction, an increase of 0.3% from October. The major reason for the Big Four’s improvement over the last 12 months has been the interest rate reductions for home loan customers and the very high level of satisfaction with internet banking. These are the latest findings from the Roy Morgan Research Consumer Single Source survey of over 50,000 people per annum.
In the six months to November 2013, the CBA maintained its top ranking of the Big Four with 81.9% satisfaction, followed by NAB (79.4%), Westpac (79.0%) and ANZ (77.2%).
The biggest improver over the last month was the NAB (up 1.2% points), followed by the CBA (up 0.6% points). Westpac (down 0.4% points) and ANZ (down 0.3% points) showed small declines.
Consumer Banking Satisfaction
Source: Roy Morgan Research Consumer Banking Satisfaction Report, November 2013; Average 6 monthly sample for Big Four banks (n = 18, 395).
Over the last 12 months the CBA showed the largest improvement in satisfaction (up 2.4% points) followed by Westpac (up 1.9% points), ANZ (up 1.5% points) and the NAB (down 1.1% points). The three banks that showed improved satisfaction were largely as a result of their home loan customers increasing their satisfaction on the back of the reductions in home loan rates. The NAB home loan customers did not show the same improved satisfaction (up 2.0% points) compared to Westpac (up 8.8% points), the ANZ (up 8.6% points) and CBA (up 4.8% points).
The following chart shows the strong gains made in satisfaction over the last 12 months by the home loan customers of the four major banks relative to non-home loan customers. In the case of Westpac and the ANZ, their home loan customers now have higher satisfaction than their non-home loan customers.
Satisfaction of Mortgage and Non-Mortgage Customers
Source: Roy Morgan Research; June 2012 - November 2012; 6 month sample for Big Four banks n = 17, 963.
Source: Roy Morgan Research, June 2013 - November 2013; 6 month sample for Big Four banks n = 17, 645.
While the main driver of the improvement in customer satisfaction among the Big Four over the last 12 months has been the reduction in home loan interest rates, the increased use of internet banking is also contributing.
Internet banking is now used by far more customers than branches and with a higher level of satisfaction, it is obviously contributing to gains in overall customer satisfaction. The CBA has the highest level of satisfaction among their customers who use internet banking (91.6%) and branch banking (88.4%).
Satisfaction with Internet and Branch Banking
Source: Roy Morgan Research; June 2013 - November 2013; 6 month sample for Big Four banks n = 17, 645.
Norman Morris, Industry Communications Director, Roy Morgan Research, says:
“The eight interest rate reductions in home loans over the last two years are now having a very positive impact on the satisfaction of home loan customers, and as such are contributing to the improvement in overall satisfaction results. But as would be expected they are not having a positive impact on deposit customers, and in fact the non-home loan customers’ satisfaction for the ANZ, NAB and Westpac have all declined.
“We have also seen that how people deal with their bank is having an impact on satisfaction scores. The increased use of internet banking for example, has contributed to increased satisfaction overall because customer satisfaction with this channel now exceeds their satisfaction with branches for each of the Big Four banks.
“It is worth noting that more of the customers of all four major banks use internet banking than use branches and this is obviously having a very positive impact on the improvements seen in customer satisfaction because customers who are ‘very satisfied’ with using the internet have a satisfaction rating of around 90%; much higher than the average satisfaction rating which is approximately 80%.
“This analysis shows that the performance of a bank at the channel level, together with fees, interest rates, customer service and product offerings all make a major contribution to overall customer satisfaction.”
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Roy Morgan Research
Roy Morgan Research is Australia’s best known and longest established market research and public opinion survey company.
Roy Morgan Single Source is thorough, accurate, and provides comprehensive, directly applicable information about current and future customers. It is unique in that it directs all the questions to each individual from a base survey sample of around 55,000 interviews in Australia and 15,000 interviews in New Zealand annually - the largest Single Source databases in the world. The questions asked relate to lifestyle and attitudes, media consumption habits (including TV, radio, newspapers, magazines, cinema, catalogues, pay TV and the Internet), brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation and leisure activities. This lead product is supported by a nationally networked, consultancy-orientated market research capability.