The overall satisfaction level of the home loan customers of the big four banks in the 6 months to September 2015 was 80.0%, which although up from 78.2% 12 months ago, is well below the other major banks. The next seven major banks all had home loan customer satisfaction levels of over 85%, with the top performers reaching over 92%.
These are the latest findings from Roy Morgan’s Single Source survey of over 50,000 people pa.
ME Bank and ING Direct lead in home loan customer satisfaction
Among the eleven major home loan banks, ME Bank home loan customers have the highest satisfaction with 92.8%, closely followed by ING Direct (92.7%). These two banks were well clear of their competitors, with the closest being Bank SA (88.7%) and Bendigo Bank (87.6%).
Bank Home Loan Customer Satisfaction**
Source: Roy Morgan Single Source, April 2015 - September 2015 (n = 7,011).
The best of the big four banks was CBA with 82.0%, followed by Westpac (80.8%), NAB (78.9%) and ANZ (77.5%). Despite the reductions in home loan rates over recent years, three of the big four banks (ANZ, CBA and NAB) have home loan customer satisfaction levels that are still below that of their non- home loan customers. Only Westpac has home loan customers that are more satisfied than their other customers (ie. 80.8% compared to 79.8%).
CBA satisfaction overall remains highest of the big four but well behind smaller banks
In September, the CBA increased its lead in overall satisfaction (82.5%) among the big four with NAB in second place (81.4%). Over the last 12 months the CBA was the biggest improver of the big four (up 1.4% points), followed by the NAB (up 0.6% points), ANZ (down 0.3% points) and Westpac (down 1.0% points). Despite the improvement by the CBA over the last year, it remains well behind the average of the banks outside of the big four who had satisfaction of 86.7% in the 6 months to September.
Consumer banking satisfaction
Source: Roy Morgan Research Consumer Banking Satisfaction Report, September 2015, average six-month sample n = 25,628
Although the big four showed some improvement in satisfaction over the last year (up 0.5% points), it was a number of the smaller banks that showed the largest gains. The Bank of Melbourne increased satisfaction by 5.8% points over the year (to 87.0%), Teachers Mutual was up 5.2% points (remains market leader on 95.3%), Bank SA increased by 4.3% points (to 87.7%) and Bendigo Bank was up by 2.0% points (to 89.9% ).
In terms of MFI (main financial institution) satisfaction, the CBA also retained number one spot among the big four in September (84.4%) and showed the biggest improvement over the last 12 months (up 2.0% points).
Norman Morris, Industry Communications Director, Roy Morgan Research says:
“With signs beginning to emerge that home loan rates will rise, it will be of critical importance to track how mortgage customers feel about their bank as it is likely to adversely impact on key metrics such as satisfaction and advocacy. Even after a sustained period of low home loan rates, the home loan customers of the big four banks remain less satisfied overall than those who do not have a home loan.
“Our research shows that the smaller banks’ home loan customers have much higher satisfaction levels than those of the big four and this gap is likely to increase if the big four are the first to increase their loan rates. Over the last 12 months it has been the 1.8% point improvement in home loan customer satisfaction among the big four banks that is mainly responsible for their overall improvement in satisfaction. Customers who didn’t have a home loan only showed an improvement in satisfaction of 0.1% point over the same period.
“We have seen in the past that if increases in home loan rates are given a great deal of adverse publicity, then a decline in customer satisfaction inevitably follows.”
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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