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Satisfaction with banks improves marginally in August

Source: Roy Morgan Research Consumer Banking Satisfaction Report August 2016, average 6-month sample n=25,600

Satisfaction with banks’ personal customers in the six months to August 2016 was 81.6%, up from 81.5% in July 2016.This current level is well above the long-term average and is just below the 20-year high (82.9%) that was recorded in 2015. The improvement over the last month was due to increased satisfaction among non-home loan customers (up 0.2% points to 81.7%) but home-loan customer satisfaction declined (down 0.6% points to 79.1%). These are the latest findings from Roy Morgan’s Single Source survey of 50,000+ people pa.

Customer satisfaction with the big four banks remained unchanged in August at 79.7% but their home-loan customers’ satisfaction has declined by 0.9% points since July to 75.9%. Non-home loan customer satisfaction on the other hand was up by 0.2% points to 80.6%.


ANZ was again the big improver among the big four in August

In July, the ANZ showed the biggest improvement in satisfaction among the big four (up 0.7% points to 79.6%) and in August it was the only one among this group to show an improvement (up 0.3% points to 79.9%).

Consumer Banking Satisfaction

bank-satisfaction-chart

Source: Roy Morgan Research Consumer Banking Satisfaction Report August 2016, average 6-month sample n=25,600

The ANZ’s improvement in August was due to an increase in satisfaction among their non-home loan customers (up 0.6% points to 80.3%), while the satisfaction of their home-loan customers declined by 1.1% points to 78.5%. The CBA home-loan customers’ satisfaction declined by 1.0% points to 75.9% in August and Westpac home-loan satisfaction declined by 1.5% points to 76.0%. NAB was the only one of the big four to show an increase in home-loan customer satisfaction (up 0.2% points to 73.2%).

The CBA retains a clear lead among the big four with 81.4%, ahead of ANZ (79.9%), NAB (77.9%) and Westpac (77.6%)

Among the banks outside of the big four, the leader was Greater Bank (95.2%), followed by Bank Australia (94.8%), Victorian Teachers Mutual Bank (94.0%), Teachers Mutual Bank (93.3%) and Heritage Bank (92.1%).


Mobile and internet banking lead in satisfaction

Over recent years we have seen the rapid growth in online banking at the expense of branches. In an average four-week period only 29.2% of bank customers use a branch compared to 37.3% for mobile banking and 52.8% for internet banking. This rapid rise in internet and mobile banking is easy to understand when we examine their satisfaction levels compared to those using the traditional branch.

Looking at the top 10 banks, except for Bank of Queensland and Bendigo Bank, they all have much higher satisfaction levels for online banking than for branches. High satisfaction with the newer channels is a likely contributor to the improvements that we have been seeing in overall customer satisfaction with banks.

Satisfaction with Bank Service Used in Last Four Weeks

satisfaction-bank-service-chart
Source: Roy Morgan Research Single Source, 6 months to August 2016 (n=26,118). Base: Australians 14+

Bendigo Bank has 95% or higher satisfaction across all three major channels, whereas Bank of Queensland is unique in that its highest satisfaction rating is for branch banking (90%). The best performer for branch banking satisfaction is Bendigo Bank (96%), followed by BankWest and Bank of Queensland (both on 90%). The best of the big four for satisfaction with branches was NAB (87%), followed closely by CBA and ANZ, both on 86%.

Satisfaction with mobile banking was highest for Bendigo Bank and Suncorp, both with 96%. CBA scored highest of the big four with 93%.

For internet banking, Bendigo Bank also leads in satisfaction with 95%, followed by Suncorp (94%). The best of the big four was CBA with 92%.


Mortgage customers of the big four remain a drag on satisfaction

The mortgage customers of each of the big four banks continue to be a drag on their overall satisfaction, despite historically low home-loan rates. Mortgage customers of the CBA are the furthest behind the satisfaction of their non-home loan customers (75.9% compared to 82.5%), followed by NAB (73.2% compared to 79.2%).

Satisfaction of Mortgage and Non-Mortgage Customers*

mortgage-vs-non-mortgage-sat-chart

Source: Roy Morgan Research Single Source: March - August 2016, n = 26,118.

Bendigo Bank has the highest home-loan customer satisfaction (of the top 10) with 96.2%, followed by 93.4% for ING Direct. These two are well clear of the field with the next best being BankWest on 85.1%. The ANZ has the highest home-loan customer satisfaction of the big four with 78.5%.

 

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

“Despite the continual high profile negative publicity about banks from the media and politicians, focused primarily on the big four, their customer satisfaction remains at historically very high levels. Although there is often some short-term negative movement in satisfaction as customers react to a particular event, it is essential to understand the longer-term trend. Roy Morgan has been measuring bank customer satisfaction for over 20 years, and as a result can say that customers have a generally positive view of the banks they deal with and have shown a strong improving trend over the last 15 years.

“It appears that one of the major negative influences currently affecting customer satisfaction across the big four is that, despite historically low home loan rates, their home-loan customers all have lower satisfaction levels than their other customers. This is somewhat surprising considering that their home-loan customers have generally benefited by declining interest rates whereas other customers have generally been disadvantaged by declines in deposit rates. A potential reason for lower home-loan customer satisfaction is the very high levels of adverse publicity that the big four attract when they don’t pass on the full interest rate reductions announced by the RBA.

“On the positive side, it appears that bank customers are moving over to online banking and are giving these newer channels generally much higher satisfaction scores than for branches. This trend is a likely contributor to improved overall customer satisfaction.

“With over 50,000 interviews conducted annually for more than 20 years, Roy Morgan data has become the currency in retail financial services. Its size enables an in-depth understanding of financial behaviour and trends, providing unique and detailed insights for anyone involved or interested in the financial services market. Customer satisfaction and advocacy are just some of the metrics that are capable of being analysed in much greater detail than in any other survey of the Australian retail financial services market.”


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%

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