Powered by MOMENTUM MEDIA
subscribe to our newsletter

Non-majors outperform majors in customer satisfaction

A non-major bank has topped the banking sector overall in customer satisfaction, with the big four trailing behind, according to new data.

According to findings taken from Roy Morgan’s recent Customer Satisfaction Report on Consumer Banking in Australia, Beyond Bank Australia scored the highest in October with 92.3 per cent (up 2.4 per cent in 12 months).

Two other non-majors came in second and third place; Newcastle Permanent achieved 90.3 per cent (up 3.6 per cent), while People’s Choice was the highest-ranked credit union, with 88.1 per cent.

Although trailing behind, and down 1.0 per cent from October last year, the Commonwealth Bank of Australia (CBA) maintained its lead of the four major banks from 2019, with 77.9 per cent of customers saying they were satisfied. 

In second place, National Australia Bank (NAB) followed closely on 77.8 per cent with a 2.7 per cent increase in the last 12 months. 

Advertisement
Advertisement

Westpac was in third place with 75.7 per cent (up 0.8 per cent), followed by Australian and New Zealand Banking Group (ANZ) with 75.1 per cent (up 0.1 per cent). 

The report stated that the findings reflect the non-majors’ successful adaptability during the COVID-19 crisis, which included responding to financial challenges faced by millions of Australians due to the pandemic.

The CEO of Roy Morgan, Michele Levine, commented: “Data for these satisfaction ratings was gathered as the government financial assistance that kept millions of Australians afloat in 2020 was being cut back, with JobSeeker payments dropping substantially and JobKeeper wage subsidies also decreasing.

“These are significant financial changes for individuals, and it will be interesting to see how they play out in terms of customer satisfaction with banking providers,” she added.

Michael Lawrence, CEO of the Customer Owned Banking Association (COBA), welcomed the findings, stating: “While customer-owned banking institutions were at the forefront of customer satisfaction prior to 2020, the past year has brought the customer-owned model into sharp focus.”

PROMOTED CONTENT


He noted that COBA’s new Spotlight on Customer Vulnerability report, conducted by Ernst & Young Australia, saw customer-owned banking institutions rate 21 points higher on satisfaction than other banking institutions when responding to customers experiencing vulnerability (97 per cent versus 76 per cent).

Although non-majors are considerably favoured by customers, according to COBA’s new Vulnerability report, the upturn for the big four is still a major win considering the loss of consumer confidence following the banking royal commission.

Indeed, Roy Morgan’s findings in July 2019 found that customer satisfaction was predominantly sitting with non-majors for home loan customers. 

[Related: Big four trail non-majors in home loan satisfaction]

Non-majors outperform majors in customer satisfaction
Non-majors outperform majors in customer satisfaction
mortgagebusiness

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Latest News

The chief of Australia’s largest bank has said lenders should act pre-emptively and shift their floor rates for mortgage serviceability am...

Total household wealth reached a high of $13.4 trillion in the June quarter, primarily due to rising property prices, according to the Aust...

The property exchange settlement platform has been granted approval to establish an Electronic Lodgement Network in the ACT.  ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.