Bank customers unsurprisingly put off by Royal Commission
The Banking Royal Commission has seemingly scarred bank customers as new results from Roy Morgan show they are 4.6 per cent less likely to recommend their bank than they were in February.
In February of this year, 59 per cent of main financial institution bank customers were highly likely to recommend their bank to a friend or colleague, but the figure has dropped to 54.4 per cent, which is also the lowest monthly level since November 2016.
The study also showed there was only a marginal increase of 0.5 per cent in the proportion of customers unlikely to recommend their banks.
The combination of the 34.9 per cent of customers who were "medium advocates’ and the 8.5 per cent who were ‘low advocates’ showed that almost half of all bank customers were reasonably indifferent to their bank, up from 39 per cent in February to 43.4 per cent in June.
ING bank remained the clear leader, with 83.3 per cent of customers highly likely to recommend them, followed by Bendigo Bank with 68.7 per cent and Bank of Queensland with 61.2 per cent.
Industry communications director, Roy Morgan, said it wasn’t surprising that there was an additional impact on satisfaction with banks given they face a continuing level of negative publicity from reporting on the Royal Commission.
AUTHOR
Anastasia Santoreneos
Recommended for you
With regional and rural suburbs exhibiting high spare capacity to invest, Money Management speaks to three regional advisers on the opportunities beyond the major cities and the importance of a strong network.
Platform consolidation is expected to accelerate among financial advisers this year, as software company Finura pinpoints which two platforms are set to be the winners, thanks to this trend.
The software provider has made several appointments in its APAC wealth propositions team, with a focus on driving growth across digital advice, Xplan and strategic partnerships.
The platform has announced it plans to close its Xplore managed discretionary account service in 2026 which holds $2 billion in funds under administration.
