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Internet banking growth and satisfaction outstrips other channels

Source: Roy Morgan Single Source (Australia) March - August 2015, n = 25,847 Australians 14+

The proportion of bank customers using the internet ( both via website or mobile) to deal with their bank in an average four week period has now grown to 62.2%, well ahead of the more traditional branch, now only used by 32.3%. The satisfaction level of internet banking is 90.2%, compared to branches with 88.4%.

These are the latest findings from Roy Morgan’s Single Source survey of over 50,000 people pa.

Growth in internet banking

Over the last two years, the proportion of bank customers using branches in an average four week period has declined from 35.5% to 32.3%, while total internet banking has increased from 58.6% to 62.2%.

Channel used* to deal with banks

Although internet banking via the website remains the major channel used, it declined marginally from 53.1% in 2013 to 52.5% currently. The only area of growth over the last two years was with mobile banking which has increased from 26.2% in 2013 to 33.6% of the population in 2015. Over this period, phone banking declined (18.9% to 15.0%) and the use of a personal advisor/banker also declined (8.4% down to 6.6%).

Internet banking leads in satisfaction

It is not surprising that the rapid growth of internet banking is associated with higher satisfaction levels than for traditional channels.

Internet banking using a website has the highest satisfaction level of all channels with 90.4%, followed by mobile banking with 89.9%.

Satisfaction with channel used* dealing with banks

Satisfaction with branch banking is lower than for the internet with 88.4%, followed by personal advisor/banker (81.8%) and phone banking (79.9%).

Satisfaction with internet banking varies between banks

The satisfaction level with internet banking is over 90% in total and for each of the major banks it is higher than their overall customer satisfaction levels. There are differences however between banks in internet customer satisfaction, with Suncorp having the highest (93.3%), followed by the CBA (92.7%).

Satisfaction with internet banking

The only banks to score less than 90% satisfaction were the ANZ (89.9%), St George (88.0%) and Westpac (87.9%)

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

“With the rapid growth in internet banking, it will become more important that satisfaction with this channel will need to be monitored against competitors and with other methods for dealing with banks if this lead is to be sustained.

“A great deal of attention is currently being paid to overall satisfaction and advocacy across the banking industry but this needs to be expanded to looking at satisfaction at the channel level as this is likely to impact overall satisfaction.

“It is worth noting that clearly the highest users of website internet banking are the high value customer, ie. the top 20% (top quintile) that controls 63% of the total market value of financial services. Nearly three quarters of this high potential group conduct internet banking using the website, making it imperative to understand functionality needs, reliability and satisfaction with this critical segment.”

For comments or more information please contact:
Norman Morris, Industry Communications Director
Office: +61 (03) 9224 5172
Norman.Morris@roymorgan.com


About Roy Morgan

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

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%

1,000

±3.0

±2.7

±1.9

±1.3

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