In July not all of the big four improved over the last month with Westpac dropping by 0.5% points and the ANZ declining by 0.1% points. The ANZ decline which has seen it fall by 5.5% points since January 2012 , was primarily as a result of an 11.2% point drop in their home loan customers’ satisfaction but it appears to have bottomed out in July and is likely to show an increase in August. In the past, negative publicity seen surrounding Westpac and CBA has tended to take six months or more to be played out and the impact of the ANZ move to act independently of the RBA ,which looks to be a major cause of their drop in satisfaction over the last six months, is showing signs of improvement.
The NAB with 78.5% satisfaction leads the big four overall and is ahead on home loan and non home customer satisfaction. Over the last 12 months it has improved by 4.3% points, followed by the CBA, up 3.4% points. Westpac satisfaction has declined by 2.7% points over the last 12 months due mainly to a 6.9% point drop in the satisfaction of their home loan customers.
Chart 1: Consumer Banking Satisfaction
Source: Roy Morgan Research Consumer Banking Satisfaction Report, July 2012, Average 6 monthly sample for big four banks, n = 18,500.
Although the big four banks are showing some tentative signs of improvement in customer satisfaction they do not appear to be making up any ground on the newer “Mutual Banks“ who currently are well clear with an overall satisfaction rating of 89.1%. The total mutual sector is doing well with Building Societies on 91% and Credit Unions 89.5%.
Banks often see their business customers as separate from their personal customers but in the case of the very small or Micro businesses which account for around 90% (or two million) of businesses in Australia , there is obviously a strong connection between the business and personal bank of the business owners.
The results of the Roy Morgan Research Business Satisfaction survey shows that business customers are much less satisfied than their personal customers, with the overall satisfaction of the big four being only 63.8% compared to 76.1% for personal customers. It is likely that this poor result among business is causing a drag on personal customer satisfaction levels.
Chart 2: Business Banking Satisfaction
Source: Roy Morgan Research Business Survey, June 2010 – July 2012, average 6 month sample n = 6,752. ** 7 months to April 2011.
The best performing business satisfaction rating among the big four is clearly Westpac, which also leads in the satisfaction rating of most major product areas, including the highest satisfaction with their relationship manager or business banker. Westpac’s strength is across most business sizes and although narrowly behind CBA in Small Businesses (turnover between $1m and $5m PA), it is ahead among the big four for Micro, Medium and Large businesses.
Norman Morris, Industry Communications Director, Roy Morgan Research, says:
“A consistent area of concern for business customers across all the major banks is that banks do not really have a strong empathy with their business as shown by lack of regular contact and failure to really understand their industry and their business. Recent announcements that banks appear to be making very solid profits in what are difficult times for business and many consumers, has the potential to cause more negative reaction across both personal and business customers depending on the extent of publicity.”
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