The country’s largest four banks; Commonwealth Bank, Westpac, NAB, and ANZ, have lagged behind smaller banks for customer satisfaction for years, but in the last decade the gap has narrowed significantly, according to Roy Morgan Research.
In fact, the company’s monthly banking satisfaction report for June 2017 found that the divide between the big four and the smaller banks has more than halved since 2005; reducing from 11.1 per cent that year to only 5 per cent at the present.
“A major focus among the big four banks over more than a decade has been to improve their customer satisfaction and be ranked number one among their peers on this metric,” noted Norman Morris, the industry communications director for the research company.
“This strategy appears to be paying dividends as not only are the big four showing improvements in satisfaction but are closing the gap to the smaller banks who have been the pacesetters in satisfaction for a long time.”
Satisfaction with the big four banks in the six months to June 2017 was 79.8 per cent, marking a 0.3 per cent increase on the six months to June 2016, the report said.
During this same period of time, cumulative satisfaction with the country’s other banks declined 0.9 per cent from 85.7 per cent to 84.8 per cent.
Despite the narrowing of this gap however, the report found smaller bank customers were still more likely to recommend their bank to friends and family than customers of the big four banks.
Customers of Teachers Mutual Bank and Heritage Bank were the most likely to recommend their financial institution to a friend or family member, with 72.1 per cent and 66.4 per cent of customers respectively saying they would do so.
Of the big four, customers of Commonwealth Bank were the most likely to recommend their bank to peers, with 50.8 per cent saying they would advocate for their bank.