Top-quintile customers unhappy with big four

big four banking satisfaction

8 February 2017
| By Hope William-Smith |
image
image
expand image

Personal customers in the low-quintile are satisfied with the performance of the big four banks in the six months leading to December 2016, but this was not the case for top-quintile customers.

Roy Morgan research found top quintile customers, who account for 62.9 per cent of total value across banking and wealth management products, had the lowest satisfaction levels.

Top-quintile (top 20 per cent) customers had also recorded the lowest level of advocacy, with a net promoter score (NPS3) of minus 23.9, on top of their low satisfaction rating of 73.4 per cent.

The highest satisfaction level for all four big banks were among their lowest-quintile customers, but this group accounts for just 0.3 per cent of total market value. The best performer for the bottom value quintile was the Commonwealth Bank of Australia (CBA) with an 86.7 per cent satisfaction rating. ANZ recorded an 84.5 per cent rating, while National Australia Bank (NAB) had 82.9 per cent of customers satisfied, and Westpac had 81.1 per cent.

Despite recording the lowest satisfaction level in bottom value quintile, Westpac recorded the second highest satisfaction rating among its top value quintile customers at 74.3 per cent.

This was behind CBA's 75.6 per cent. A total of 71.3 per cent of top-quintile ANZ customers were satisfied, while NAB recorded 70.6 per cent.

"A focus on customers who are ‘very satisfied' provides a more stringent criteria and a tougher benchmark for banks to target," Roy Morgan industry communications director, Norman Morris said.

"This research shows that there is now a big opportunity to focus both satisfaction and advocacy on the more important segments rather than simply a total market measure."

Outside the big four, Teachers Mutual Bank continued ahead of the pack with 96.1 per cent of its top-quintile customers satisfied, slightly ahead of Bendigo Bank (91.6 per cent), ING Direct (87.8 per cent), and Bank of Queensland (84.4 per cent).

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

9 hours ago

Interesting. Would be good to know the details of the StrategyOne deal....

4 days 14 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 4 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

3 days 12 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days 15 hours ago