Mutual beats the majors on customer satisfaction

Bank customer satisfaction remains high at 82.8 per cent, however is down slightly on the 20-year high of 82.9 per cent reported in March 2015, based on findings from Roy Morgan’s Single Source Survey.

Outside of the big four, Teachers Mutual Bank held its position as the best performer with 94.8 per cent of customers satisfied, significantly higher than the big four average satisfaction level of 86.1 per cent.

CBA cemented its place as the major with the highest level of satisfaction, with 82.6 per cent. Australia’s biggest bank was the only major to see an increase in customer satisfaction levels from July – ANZ, NAB and Westpac all saw declines.

ANZ customers were the least satisfied with only 79.4 per cent of all customers saying they were happy with their bank.

All the major banks fared better among low-net-worth individuals with CBA taking a significant lead on 87.8 per cent, ANZ, 85.4 per cent; and Westpac and NAB tied on 84.4 per cent.

There was a vast difference between the satisfaction levels of low-net-worth and high-net-worth individuals.

NAB knocked CBA off its perch and had the highest satisfaction among high-value customers, with 77.5 per cent reporting satisfaction compared with 76 per cent at CBA, 75.1 per cent of Westpac customers and 73.3 per cent for ANZ.

“For more than a decade, the big four banks have had a key objective to improve customer satisfaction and as a result they have all achieved major gains,” Roy Morgan industry communications director Norman Morris said.

He attributes low levels of customer satisfaction among the top quintile to market share, saying that all of the major four banks have less than a third of their top quintile customers’ wallets and that they represent the greatest opportunity for business growth.

“This research shows that there is now a big opportunity to focus more on important segments rather than simply a total market measure,” Mr Morris said.

“With a market that is as highly skewed as finance, where 20 per cent account for nearly two-thirds of the market value, performance in this segment is in need of more attention if banks are to achieve longer-term financial gains.”