Finance Royal Commission takes toll on bank customers
The Finance Royal Commission has clearly taken its toll on bank customers, with satisfaction levels dropping four per cent from 82.3 per cent in January to 78.3 per cent in June, its lowest monthly satisfaction level since April 2012, new results from Roy Morgan show.
The results also showed the Net Promoter Score for banks had declined in line with satisfaction, dropping from 0.49 in January to -4.03 in June.
The study showed the results remained above the long-term average of 73.8 per cent, calculated since 2001, but should be monitored closely as more than one in five (21.7 per cent) bank customers pose a potential threat to customer retention.
The study showed ING and Bendigo Bank had the highest level of customer satisfaction, with 88.6 per cent and 87.7 per cent of customers satisfied respectively.
The Commonwealth Bank of Australia remained the leader of the big four, with 78.3 per cent, followed by National Australia Bank at 77.1 per cent, Westpac at 74.6 per cent and ANZ at 76.1 per cent.
The results showed a big decline in mortgage customer satisfaction, with only 75.7 per cent of customers satisfied as opposed to the 80 per cent satisfaction of non-mortgage customers.
Industry Communications Director, Norman Morris, said the results were not surprising given the continuing level of negative publicity involving banks and the Royal Commission.
“Despite the declines in satisfaction and advocacy, they remain above historic levels but the potential impact of continued negative publicity represents a major challenge for banks.”
AUTHOR
Anastasia Santoreneos
Recommended for you
The Financial Services and Credit Panel has made a written direction after advice regarding non-concessional contributions meant an individual was forced to withdraw over $330,000 from their super.
With Insignia Financial suffering a cyber attack on its Expand platform, this can potentially have a negative impact on the two private equity bids currently in play for the firm.
State Street Global Advisors has made an equity investment in Ethic, a platform helping financial advisers to produce bespoke portfolios, reflecting the greater client demand for customised portfolios.
WT Financial’s new entity with Merchant, Investco, has entered into a heads of agreement to merge three financial advice firms.
