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Bank advocacy highest among App users

1. Based on a rating of 8, 9 or 10 on a 10 point scale for likelihood of recommending bank where 10 is very likely to recommend and 1 is very unlikely to recommend. Source: Roy Morgan Single Source (Australia). 12 months to January 2018, n= 50,129. Base: Australian 14+
Bank customers using an App on a mobile phone or tablet to deal with their bank are more likely to recommend them to a friend or colleague compared to those accessing their bank using other channels. This finding has come from new data that has been collected by Roy Morgan for the first time over the last 12 months. It highlights the critical link between how customers access their bank and the impact this has on their level of advocacy or likelihood of recommending. 

These latest results are from Roy Morgan’s Single Source survey of over 50,000 consumers per annum.

In the 12 months to January 2018, more than two thirds (68.7%) of customers who dealt with their bank using an App on a mobile phone or tablet said they were highly likely to recommend their bank to others. This is based on them scoring an 8, 9 or 10 on a possible 10 point likelihood scale. This level of advocacy is well above that of the more traditional method of dealing with banks, the branches with 64.7% being high advocates. 

High Likelihood of Recommending Bank1 Based on Channel Used 

1. Based on a rating of 8, 9 or 10 on a 10 point scale for likelihood of recommending bank where 10 is very likely to recommend and 1 is very unlikely to recommend. Source: Roy Morgan Single Source (Australia). 12 months to January 2018, n= 50,129. Base: Australian 14+ 

Internet banking using a website is currently the most common method for dealing with banks but is losing some ground to the use of Apps on mobile phones or tablets. This is likely to lead to an increase in the proportion of high advocates as using a bank website has a lower advocacy rating of 64.2% compared to 68.7% for Apps.

Only 60.3% of customers dealing with a bank through a personal or private banker are likely to be high advocates, with use of financial planners or advisors close behind on 59.1%.The major problem areas, with low levels of advocacy, involve phone banking when a computerised voice is used (52.1% high advocates) and phone banking when speaking to a person (57.6%). 

Norman Morris, Industry Communications Director, Roy Morgan says: 

“The rapid increase in the proportion of bank customers using an App on a mobile phone or tablet is likely to result in a positive outcome for banks. The higher level of advocacy for this group, combined with their rapid growth, should result in improved satisfaction and advocacy levels.

“Our research shows that there are major differences in advocacy and satisfaction ratings across the different ways or channels that customers choose to deal with their banks. Meeting customer needs in terms of their channel preferences, rather than trying to encourage them on to another channel is likely to create more loyal customers.

“This data is available for individual banks, enabling a truly comprehensive competitive analysis of their relative performance on these important metrics that are likely to impact on their satisfaction and advocacy scores.”

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