Which bank gets the boss’s money?
The Commonwealth Bank appears to have succeeded in achieving a rare double - not only emerging as the market leader with respect to professional services companies but also attracting the personal banking business of the people who make the decisions within those companies.
That is the analysis of the latest Roy Morgan Business Survey, which found that among businesses operating in Professional Services, the Commonwealth Bank had the highest loyalty correlation between business and personal banking, with 90 per cent of their business customers’ financial decision-makers in the sector using the bank for their personal banking.
The Roy Morgan research found the Commonwealth Bank was the preferred institution for business in the Professional Services sector, accounting for 28 per cent of the market, followed by Westpac (24 per cent), NAB (21 per cent) and ANZ (18 per cent).
However, it then pointed to the loyalty factor which flowed to the Commonwealth bank, with 90 per cent of the “decision makers” within the Professional Services businesses it services also doing their personal banking with the bank, followed by ANZ (84 per cent), Westpac (77 per cent) and NAB (75 per cent).
Commenting on the outcome, Roy Morgan’s director of business research, Nigel Smith, said there was not always a relationship between the finances of businesses in an industry, and the finances of people in charge of those businesses.
“The CBA has shown that it not only has the highest market penetration amongst businesses in the professional services sector but it has also been able to achieve the strongest link to the personal banking among the financial decision makers of its customers,” he said.
Recommended for you
Clime Investment Management has faced shareholder backlash around “unsatisfactory” financial results and is enacting cost reductions to return the business to profitability by Q1 2025.
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
