Thursday, June 18th, 2015

The satisfaction level of Australian business banking customers in May increased by 0.2% points  (to 65.8%) from April but remains well below the peak of 69.6% in November 2014.

These are the latest findings from the Roy Morgan Business Single Source Survey of around 10,000 interviews pa with business decision makers across Australia.

Westpac remains clear leader among the big four

Over most of the last four years, Westpac has clearly been the best overall performer among the big four banks in terms of business customer satisfaction. Currently Westpac’s satisfaction rating is 68.2%, followed by NAB (64.9%), CBA (64.0%) and ANZ (60.7%). For the last 12 months, the NAB has been the only one of the big four to show an improvement (up 1.4% points) while the ANZ had the biggest loss (down 3.8% points).

Business Banking Satisfaction

Source: Roy Morgan Research Business Banking Satisfaction Report, May 2015; average 6-month sample n=6,119.

The market leaders overall are among the smaller banks, with the best performers being Bendigo Bank (81.1%), Suncorp (77.7%) and Macquarie (73.7%).

Big potential in non-MFI customers

Around one-third to a half of each major bank’s business customers don’t regard them as their main financial institution (MFI). This group holds the greatest potential for growth compared to focusing on gaining completely new customers.

Proportion of Business Banking Customers that are MFI*

Source: Roy Morgan Research Business Satisfaction Report, May 2015; 6 months to May 2015 (n=4,524)

The NAB has the stongest connection to its business customers, with 69.8% regarding it as their MFI, followed by the CBA (66.8%) and Bendigo Bank (62.9%).

It is important to understand why such a large proportion of customers don’t regard their bank as their MFI if they are to be converted.

Non-MFI customer satisfaction falling well below others

One of the key reasons that business customers don’t regard a bank they deal with as being their MFI is to do with lower levels of satisfaction.

Each of the big four bank’s business customers who don’t regard them as their MFI have much lower satisfaction levels than the MFI customers. For example, Westpac customers who regard Westpac as their MFI have a satisfaction rating of 72.8%, whereas their non-MFI customers rate them at only 59.7%.

Satisfaction of Business Banking Customers - MFI* and non MFI*

Source: Roy Morgan Research Business Satisfaction Report, May 2015; 6 months to May 2015 (n=4,524)

Although it is probably to be expected that satisfaction levels of non-MFI customers are lower than the MFI segment, it is rarely measured and yet non-MFI customers make up around 30% or more of the customer base.

Norman Morris, Industry Communications Director, Roy Morgan Research says:

“With a generally increased focus by banks on retaining and growing business banking customers, it is worth looking first at the potential of their existing customers that have a relatively weak commitment to their bank. These are the customers that don’t regard them as their MFI but who might be converted if their banks didn’t overlook them so often in their effort to attract new customers.

“The low satisfaction level of business customers compared to personal customers is a major issue facing banks but the additional problem in need of attention is that non-MFI business customers have even lower satisfaction levels.

“While MFI business customers are more satisfied than others, a relatively low proportion of them are ‘very satisfied’. Although it is this measure that leads to higher advocacy levels, only around one in five business customers is ‘very satisfied’ with their bank. Customers who say they are ‘very satisfied’ with their bank have a 90% chance of being highly likely to recommend their bank to others— ie be regarded as ‘high advocates’. By contrast, customers who are ‘fairly satisfied’ only have around a 50% chance of being ‘high advocates’. The much sought-after high advocacy levels therefore follow on from customers being ‘very satisfied’.”

Contact Profile

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


business bank satisfaction




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