Business not happy with big four banks
Satisfaction among the big four's business customers continued to slip in May after dropping in April for the first time since July 2011.
According to Roy Morgan Research's monthly report for Business Banking in Australia, business customer satisfaction has slipped 0.6% to 63.5% in May, compounding a 0.7% slip in April.
The big four's major problem is business customers' satisfaction with their loan arrangements which have now reduced to 58.6%, the report said.
Business satisfaction was lower for all banks than its personal customer satisfaction, which was approximately 14% higher. Smaller banks also declined in May, reducing by 1.0%.
"It would appear that the banks are doing a relatively poor job of meeting the more complex and potentially riskier needs of their business customers," Roy Morgan stated, noting poor ratings for following developments in the business and maintaining regular contact.
ANZ experienced the sharpest decline, dropping 2.4% in May and 3.5% over the year, while NAB made up the most ground over the year through increasing satisfaction by 3.0% to 64.7%.
Westpac led the market in May at 66.8%, followed by NAB at 64.7 %, Commonwealth Bank at 61.6%, and ANZ with 61.5%.
Westpac also led the pack in the 'micro' business segment at 67%, although NAB closed the gap somewhat over the past 12 months, improving by 2.7% compared to Westpac's 1.2% decline.
The CBA ranked fourth, which Roy Morgan said would greatly affect its business performance as 89% of businesses are in this segment.
However, CBA topped the list in the 'small' business segment, edging out Westpac and NAB. ANZ is still suffering from a 5% decline over the year which, when compared to NAB's improvement, puts them far behind.
Westpac's performance over the year has propelled it into first place among the medium to large segment, followed by ANZ, NAB and CBA.
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
