GenX continues to be unhappy with major banks
A recent Roy Morgan survey on consumer satisfaction reveals that the GenX and millennial demographics record low satisfaction levels with the major banks.
According to the study, the lowest levels of satisfaction were recorded in the age group of 35 to 59 and amongst those aged between 22 to 34. In addition, the 60 to 69 age group also recorded low levels of satisfaction. What makes these numbers more significant is that these three segments account for 88.5% of total market value and 75.8% of customers.
"Although this group accounts for nearly 90% of the value of the financial services market, their relatively low satisfaction level clearly indicates that banks need to pay them more attention and put more effort into retaining and attracting more of them, said Norman Morris, Roy Morgan Research's communications director.
Overall, the research found that satisfaction levels among personal banking customers were equal to a 20-year high even though there is a significant variation in age groups.
The results also showed that for the six months to May, the most satisfied bank customers were those aged above 70, followed by those between 14 and 21. Generally, these two age groups have shown the highest satisfaction of all age groups over the last five years across each of the Big 4 banks.
"In terms of value, however, these two high rating groups account for only 11.5% of the market’s total financial footings or value despite making up 24.2% of customers," Morris said.
"The over 70s segment has the highest usage of branches and although they are making increasing use of Internet banking, they obviously prefer things to stay much the same. Having very few mortgages is another factor to make them a little more relaxed when dealing with their bank, but low deposit rates are likely to begin having a negative impact."
The survey also revealed that out of the Big 4 banks, CBA’s customers remain the most satisfied. The CBA scored a satisfaction rating of 82.5%, ahead of National Australia Bank with 81.8%, Westpac Banking Corporation at 81.3% and Australia New Zealand Banking Group with 79.1%.