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Satisfaction with banks maintained at record high

Source: Roy Morgan Research; Sep 2012 - Feb 2013; 6 month sample for Big Four banks n = 18,228.
Source: Roy Morgan Research, Sep 2013 - Feb 2014; 6 month sample for Big Four banks n = 17,639.
The satisfaction level of the personal customers of banks was 81.6% in February, no change since January, but enough to equal the highest level in the 18 years of this survey. The Big Four banks scored 80.1% satisfaction, and the other banks scored 84.8%. The major reason for the Big Four’s improvement over the last 12 months (+1.3% points) has been the interest rate reductions for their home loan customers, who have increased their satisfaction rating by 3.5% points compared to an increase of only 0.8% points for their other customers. These are the latest findings from the Roy Morgan Research Consumer Single Source survey of over 50,000 people per annum.

In the six months to February 2014, the CBA maintained its top ranking of the Big Four with 82.1% satisfaction, followed by NAB (80.3%), Westpac (78.0%) and ANZ (77.9%). The smaller banks, however, remained the clear overall pace-setters with 14 banks scoring higher than the best of the big four, the leader being Teachers Mutual Bank on 91.2%.

Over the last month, the CBA, NAB and ANZ satisfaction ratings remained unchanged, and Westpac showed a small decline (down 0.5% points).

Consumer Banking Satisfaction

consumer-banking-sat

Source: Roy Morgan Research Consumer Banking Satisfaction Report, February 2014; Average 6 monthly sample for Big Four banks (n = 18,333).

Over the last 12 months the ANZ and CBA showed the largest improvement in satisfaction (both up 1.7% points) followed by NAB (up 1.1% points) and Westpac (up 0.3% points). Overall, the big four banks increased their satisfaction rating by 1.3% points, with their home loan customers being the main driver of this improvement (up 3.5% points).

The following chart shows the strong gains made in satisfaction over the last 12 months by the home loan customers of the ANZ, CBA and Westpac relative to their non-home loan customers. In the case of NAB, their non-home loan customers had the biggest gains in satisfaction. 

Satisfaction of Mortgage and Non-Mortgage Customers

mortgage-vs-non-mortgage

Source: Roy Morgan Research; Sep 2012 - Feb 2013; 6 month sample for Big Four banks n = 18,228.
Source:
Roy Morgan Research, Sep 2013 - Feb 2014; 6 month sample for Big Four banks n = 17, 639.

While the main driver of the improvement in customer satisfaction among the Big Four over the last 12 months has been the reduction in home loan interest rates, the increased use of internet banking is also contributing.

Internet banking is now used by far more customers than branches and with a higher level of satisfaction, it is obviously contributing to gains in overall customer satisfaction. The CBA has the highest level of satisfaction among their customers who use internet banking (92.5%) and branch banking (89.4%).

Satisfaction with Internet and Branch Banking

internet-branch-banking

Source: Roy Morgan Research; Sep 2013 - Feb 2014; 6 month sample for Big Four banks n = 17,639.

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

The home loan interest rate reductions over the last two years have been driving big improvements in customer satisfaction but with no change in rates since August 2013, it appears that the impact of these reductions is wearing off with satisfaction among home loan customers of the big four banks declining in January and February this year. The majority of bank customers do not have a home loan and will be looking for improvements in areas such as fees, service, products and higher interest rates. It will be important therefore when interest rates eventually rise that this group receive the full increase just as home loan customers expect to receive the full reductions when the cash rate declines.

“The increased use of internet banking has also contributed to increased satisfaction overall because customer satisfaction with this channel now exceeds their satisfaction with branches for each of the big four banks. The challenge here will be to raise the satisfaction level of other channels such as branches and phone banking which remain the preferred method for many customers when dealing with their bank.

“A potential major drag on improving customer satisfaction among consumers is the fact that the satisfaction among micro businesses with their banks continues to lag well behind personal consumers. Satisfaction among micro businesses with the big four banks is currently only 64.5%, well below the 80.1% level of personal consumers. With two million of these businesses with close links to their personal banking, a low satisfaction score for their business bank is likely to have a negative impact on their personal banking satisfaction rating.”

View more information on the Australian Consumer Banking Satisfaction Monthly Report.

View more information on the Australian Consumer Confidence – Detailed Monthly Report.

For comments or more information please contact:

Norman Morris
Industry Communications Director
Office: +61 (3) 9224 5172
Mobile: +61 402 014 474
Norman.Morris@roymorgan.com

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About Roy Morgan Research Consumer Single Source

Roy Morgan Single Source is based on over 50,000 interviews each year and has been designed and engineered to represent the ideal source model. It provides an integrated understanding of consumers; what they are like, what they consume, what they buy, what they think, what they want, what they watch, read and listen to. The overriding benefit of Roy Morgan Single Source is the strategic insights it offers in the ability to link many aspects. Not only can an organisation’s profitable customers be delineated by what they think, do, watch, but so can non customers. Hence brand positioning, product differentiation, merchandising, efficient media planning, market expansion and line extension opportunities can all be considered in the light of the correct understanding of the marketplace.

About Roy Morgan Research

Roy Morgan Research is the largest independent Australian research company, with offices in each state of Australia, as well as in New Zealand, the United States and the United Kingdom. A full service research organisation specialising in omnibus and syndicated data, Roy Morgan Research has over 70 years’ experience in collecting objective, independent information on consumers.

In Australia, Roy Morgan Research is considered to be the authoritative source of information on financial behaviour, readership, voting intentions and consumer confidence. Roy Morgan Research is a specialist in recontact customised surveys which provide invaluable and effective qualitative and quantitative information regarding customers and target markets.

Margin of Error

The margin of error to be allowed for in any estimate depends mainly on the number of interviews on which it is based. Margin of error gives indications of the likely range within which estimates would be 95% likely to fall, expressed as the number of percentage points above or below the actual estimate. Allowance for design effects (such as stratification and weighting) should be made as appropriate.

Sample Size

Percentage Estimate

40%-60%

25% or 75%

10% or 90%

5% or 95%

5,000

±1.4

±1.2

±0.8

±0.6

7,500

±1.1

±1.0

±0.7

±0.5

10,000

±1.0

±0.9

±0.6

±0.4

20,000

±0.7

±0.6

±0.4

±0.3

50,000

±0.4

±0.4

±0.3

±0.2