Sunday, June 17th, 2012
Satisfaction among the business customers of banks fell in May by 0.8% points (to 64.3%), this is the third consecutive month of declines. The big four banks declined by 0.6% points for the month and the smaller banks fell 1.0% points. Among the six major banks Suncorp was the best performer (67.6%) narrowly ahead of Westpac (66.8%).
These are the latest findings from the Roy Morgan Research Business Banking Satisfaction Report.

Among the big four banks, the largest movement over the month was seen from the ANZ which declined by 2.4% points and over the last 12 months it is now down by 3.5% points. Over the last year, the NAB was clearly the biggest improver of the big four, up 3.0% points to 64.7%. The overall market leader among the big four in May was Westpac on 66.8%, followed by NAB (64.7%), Commonwealth (61.6%) and ANZ (61.5%).
Over the last 12 months St. George has declined by 6.8% points (to 64.7%) while at the same time Suncorp improved by 2.4% points (to 67.6%) to now lead the top six business banks.

Business Banking Satisfaction

Source: Roy Morgan Research Business Survey, June 2010 – May 2012, average 6 month sample n = 6,753
** 7 months to April 2011.

In the “Micro” business segment (turnover less than $1m PA), Westpac remains the leader among the big four with 67.0%, followed by the NAB on 64.8%. The NAB has closed the gap considerably to Westpac over the last 12 months having improved by 2.7% points compared to a drop of 1.2% points by Westpac. The CBA currently ranks fourth in this segment (61.2%) which has a major impact on it’s overall performance in the business market due to the fact that 89% of businesses are in this segment. Suncorp is narrowly ahead in this segment with 67.9%.

In the “Small” business segment (turnover $ 1m - $ 5 m PA), the best performer among the big four is the CBA (64.8%) but they only have a narrow lead over Westpac (63.7%) and the NAB (63.5%). The ANZ is currently performing poorly in this segment (57.7%) due to a 5.0% point decline over the past year, which is in sharp contrast to the 5.1% point gain seen from the NAB. Around 8% of businesses in Australia are in this segment but their value is obviously much greater than this. Suncorp (70.9%) and St George (65.8%) both lead the big four.

For the “Medium/Large” segment (turnover $ 5m + PA), the clear leader across the 6 major banks is now Westpac (70.3%) due to it’s improvement over the last year (up 3.0 % points). In second place is the ANZ (65.3%) which has declined by 2.5% points over the last year. The NAB (64.9%) again has shown improvement in this segment (up 2.2% points for the year) and is in third place. The CBA is ranked fourth with 63.4% due to a decline of 3.2% points over the last 12 months. St George is ranked fifth (62.9%) followed by Suncorp (51.9%).

Norman Morris, Industry Communications Director, Roy Morgan Research, says:
“The major problem area for all the big banks remains the very low satisfaction levels their business customers have regarding their loans. Satisfaction with loans among the big four customers is now only 58.6% but it will be interesting to see if this improves with declines in the official cash rate seen in May and June, the impact of which will depend on what is passed on.

“Satisfaction with banks by their business customers remains well below the level of their personal customers (around 14% points lower) for all the major banks and with over 2 million business customers this will be impacting negatively on the satisfaction rating given to banks by consumers. It would appear that the banks are doing a relatively poor job of meeting the more complex and potentially riskier needs of their business customers and they continue to get low ratings on issues such as ‘following developments in your business’  and ‘maintaining regular contact with you’. With a slowing of household and business credit growth there will be a temptation to reduce contact with customers even more but this is only likely to compound the problem of low satisfaction and customer retention.”

The latest detailed Roy Morgan ‘Business Satisfaction — Business Banking Report in Australia’ includes ANZ, Bank of Queensland, Bankwest, Bendigo Bank, Citibank, Commonwealth Bank, Macquarie Bank, National Australia Bank, St George Bank, Suncorp and Westpac.

The Roy Morgan Research Business Survey interviews over 13,000 Businesses per annum covering the full range of industries and business sizes so as to represent all the businesses covered by the ABS. The survey covers all aspects of business finance so as to be comparable with the well established personal finance survey which interviews over 50,000 per annum. The combined surveys represent well over 60,000 interviews per annum, giving them unique ability for in depth understanding of the two markets and the ability to understand the link between personal and business banking.

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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.
Shaun Ellis
P: 03 9224 5332


Latest findings from the Roy Morgan Research Business Banking Satisfaction Report.



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