Bank reputation is the new profit driver
East & Partners and Daymark Public Relations have launched the Bank Reputation Index (BRI), which seeks to rank the reputation of Australia banks among customers.
Bank reputation has replaced customer satisfaction as the primary indicator of the take-up of bank products and services, stated the report.
Daymark and East & Partners also found that executive salaries were a more significant driver than a bank's corporate social responsibilities.
The quarterly ranking system was based on a survey of 1,325 customers in small to medium enterprise (SME), corporate, and institutional business banking segments.
According to the October 2011 BRI, National Australia Bank (NAB) topped the list for best business bank reputation by the market, and best reputation with SME and corporate customers. Westpac had the best reputation as an institutional bank, and Commonwealth Bank had the best reputation as a retail bank.
Compared to customer satisfaction, the index found the Bank of Queensland was rated the highest for reputation for business banking by its own customers, and also leads the SME market. The nearest bank in the index was again NAB, which ranked fourth in reputation by its customers.
A focus on business banking was the single most important driver of bank reputation, with nearly 60 per cent of respondents nominating this factor, the report stated.
"When it comes to reputation, the gap between the perception of a bank's reputation as a business bank, and the experience of customers points to both risks and opportunities for banks chasing the business customer," said Daymark director Richard Peters.
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