The satisfaction level of personal banking customers in January increased by 0.3% points from December to a new 19-year high of 82.9%, an increase of 1.3% points over the last 12 months. The competition among the big four banks for number one ranking remained close, with the CBA the leader in overall satisfaction on 81.9%. In terms of MFI (main financial institution) customer rankings, Westpac (84.1%) still leads ahead of NAB (83.4%), CBA (83.3%) and ANZ (81.2%). The Westpac score of 84.1% was the highest on record for a big four bank.
These are the latest findings from the Roy Morgan Single Source survey of over 50,000 people pa.
“Other banks” remain the leaders in satisfaction
Despite the improvement in satisfaction by the big four over the last 12 months (up 0.9% points), the “other banks” have also improved (up 2.3 % points) to retain their big lead. The satisfaction level of “other banks” is currently 86.9%, up from 79.6% in 2005 (an increase of 7.3 % points). Each of the big four showed an improvement in satisfaction over this period, with the biggest increase being the CBA (up 18.0% points).
Consumer banking satisfaction
Source: Roy Morgan Research Consumer Banking Satisfaction Report, January 2015, average 6-month sample n= 25,649
The big four banks are now only separated by 3.0% points in their customer satisfaction ratings, compared to 9.2% points in 2005. The CBA has retained the top spot with 81.9%, followed by Westpac (81.3%), NAB (80.9%) and ANZ (78.9%).
Satisfaction with channel used impacts overall satisfaction
In order to better understand what impact the method of dealing with banks has on overall customer satisfaction, Roy Morgan Research has recently introduced a new report that looks at the satisfaction level across the different ways that customers access their bank (the “Service Satisfaction Report”).
In an average four-week period, 62.3% of bank customers deal with their bank by the internet, compared to only 33.9% using a branch. This makes understanding the satisfaction level of these online customers of critical importance because of their potential impact on overall customer satisfaction. Satisfaction in dealing with the big four banks by internet is 90.2%, compared to 87.7% for branches and only 79.1% for phone banking.
Satisfaction with Banking Channel used in last 4 weeks
The highest satisfaction level among the big four for internet banking is the CBA (92.0%), followed by the NAB (89.7%), ANZ (88.8%) and Westpac (87.9%).
For satisfaction with branch banking, the CBA leads with 88.6%, followed by Westpac (87.7%), ANZ (87.1%) and NAB (86.0%).
It is important to note that the customers who are satisfied with the way they access their bank have overall satisfaction levels well above average. For example, the overall CBA satisfaction level is 81.9% but among their customers who are satisfied when dealing with a CBA branch, the overall satisfaction is 88.4%. This is a strong indication that performance with the channel used has a big impact on overall satisfaction as measured currently.
Housing loan customers still not as satisfied as others
Despite low housing loan interest rates, the housing loan customers of banks overall still have lower satisfaction ratings than other customers.
Satisfaction of home loan and other customers
The highest home loan customer satisfaction rating among the major banks is Bendigo with 91.5%, well ahead of second place Suncorp with 81.8%. The best of the big four for home loan customer satisfaction is Westpac (81.4%) and CBA leads among non-home customers with 82.6%. The ANZ has the lowest score for both groups.
Over the last 12 months, the improvement in satisfaction rating for Westpac overall (+ 2.8% points) was driven by both home loan customers (up 2.7% points) and non-home customers (up 2.9% points). The ANZ improvement (up 1.0% points) was due to non-home loan customers (up 1.2%), whereas the NAB’s result was due to an improvement among non-home loan customers (up 2.6% points). The CBA’s small decline in satisfaction over the last 12 months (down 0.2% points) was the result of a decline in satisfaction among their non-home customers.
Norman Morris, Industry Communications Director, Roy Morgan Research says:
”The flexibility of having many ways to more conveniently deal with banks without having to rely on branches has proven popular with customers as the very high satisfaction levels for each channel indicate. This appears to have contributed to overall satisfaction levels, which are the highest they’ve been in nearly two decades.
“The real challenge for banks is to turn this positive trend in customer satisfaction into improved levels of customer loyalty and advocacy. The latest Roy Morgan Research analysis shows that the major banks are only obtaining around one-third of the value of their customers’ financial services wallet. To improve this, it is vital for them to understand the level of “very satisfied” customers, as this correlates with higher share of wallet.
“It will also be important for the big four banks to achieve satisfaction levels more on a par with their smaller competitors if they are to increase cross-sell and retain customers.”
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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