The satisfaction level of the personal customers of banks remained at 82.0% in May, unchanged from April, but enough to maintain its highest level in the 18 years since this survey began. The satisfaction of business customers in May fell to 64.4%, compared to 64.9% in April, and put them further behind the rating given by personal customers. These are the latest findings from the Roy Morgan Research Consumer Single Source survey of over 50,000 people per annum and Business Single Source survey of more than 13,000 business finance decision makers per annum.
Business customers less satisfied
In the six months to May 2014, the CBA shows the highest satisfaction level for personal banking customers of the Big Four banks with 82.0% and Westpac clearly has the highest satisfaction among business customers with 70.3%.
All four major banks show much lower levels of satisfaction for their business customers compared to their personal customers. The biggest gap is for CBA, where business customers are 17.9% points behind its personal customers, while Westpac has the smallest gap with its business customers 8.7% behind.
Business and Consumer Banking Satisfaction: Big Four Banks
Source: Roy Morgan Research Consumer Single Source, December 2013-May 2014, Big Four Banks n=17,036; Roy Morgan Research Business Single Source, December 2013-May 2014, n=4,349. *Includes banks not shown
Personal customer satisfaction remains at record high
In the six months to May 2014, the CBA maintained its leading position among the Big Four with 82.0% satisfaction, followed by NAB (80.7%), Westpac (79.0%) and ANZ (78.6%). The biggest change among the major banks over the last month was CBA (down 0.6% points), followed by NAB (down 0.5% points), but ANZ and Westpac are both up by 0.4% points.
It is worth noting that nearly all of the smaller banks are well above the rating given to the best of the Big Four, with some scoring above 90%.
Consumer Banking Satisfaction
Source: Roy Morgan Research Consumer Banking Satisfaction Report, May 2014; Average 6 monthly sample for Big Four banks (n = 18,290).
Over the last 12 months the NAB and Westpac both showed the largest improvement in satisfaction (up 2.0% points) followed by the CBA (up 1.7%) and the ANZ (no change). The CBA showed improved satisfaction largely as a result of their home loan customers increasing their satisfaction on the back of the reductions in home loan rates. Westpac and NAB had their biggest gains from non-home loan customers. The NAB’s home loan customers showed a decline in home loan customer satisfaction over the last 12 months (down 2.8% points). All four of the major banks still have lower satisfaction levels among their mortgage customers compared to their non-mortgage customers, which is somewhat surprising considering the low lending rates.
Business customers fall further behind
While consumer banking satisfaction for total banks has continued to increase over the last year (up 1.1% points), business customer satisfaction has declined marginally (down 0.2% points). In May 2014, Westpac increased its lead in Business Customer Satisfaction over the other Big Four with 70.3% satisfaction (up 1.6% points from April), followed the ANZ (64.5%, down 1% point), the CBA (64.1%, down 1.4%) and NAB (63.5%, down 0.3%). ANZ was the biggest improver over the last 12 months (up 3.8% points), followed by Westpac (up 2.9% points), NAB (up 1.7% points) and CBA (down 0.3% points).
Business Banking Satisfaction
Source: Roy Morgan Business Banking Satisfaction Report, May 2014; Av 6 monthly sample (n=4,349).
Business satisfaction with major products low
Businesses are showing very low satisfaction levels for Transaction/Deposit Accounts, Loans and Relationship Managers/Business Bankers, which is obviously having an impact on the low overall satisfaction levels. Westpac has the highest satisfaction level of the Big Four for the three areas shown, in line with its top ranking seen earlier. The CBA scores lowest for loans (58.4%), the NAB scores lowest for Relationship Managers (60.5%) and the ANZ (60.9%) and NAB (61.0%) have the lowest rating for Transaction/Deposit Accounts.
Business Satisfaction with Accounts, Loans and Relationship Managers
Source: Roy Morgan Research Business Single Source, December 2013-May 2014, n=4,349
Norman Morris, Industry Communications Director, Roy Morgan Research, says:
“Satisfaction among banks’ personal customers remains at record high levels and is still well above the satisfaction level of their business customers. The relatively low satisfaction among business customers is likely to be impacting negatively on personal customer satisfaction as there is a strong link between the bank used for business and the personal bank for Australia’s two million micro and small business owners.
“Despite recent moves by the major banks to show an increased focus on their business customers over the last 12 months, satisfaction has in fact fallen further behind that of their personal customers. Banks continue to lack empathy with their business customers who require more attention and understanding. This is evidenced by the fact that these customers rate their banks very poorly on ‘maintaining regular contact’, ‘following developments in the industry’ and having a ‘good understanding of their business.’
“To overcome this problem, business managers are used by banks to manage relationships with their clients, but at this stage the satisfaction level with these managers remains relatively low at around 65% for the major banks and has fallen marginally over the last 12 months.
“The current Financial System Inquiry will need to consider how well the needs of business are being met by the banks in order to ensure that they remain viable and contribute to economic growth. At the present time it appears that there is room for improvement.”
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.
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