Smaller banks outperform Big 4 in business customer satisfaction ratings
Although the satisfaction level of Australian business banking customers increased in May by 0.2% from April (to 65.8%) it remains significantly below the peak of 69.6% recorded in November 2015, according to the latest Roy Morgan Research findings.
For the fourth consecutive year, Westpac was the best overall performer among the big four banks achieving a business customer satisfaction rating of 68.2%, followed by NAB (64.9%), CBA (64%) and lastly ANZ (60.7%). Out of the big four, NAB recorded the biggest improvement in its satisfaction rating by 1.4%, while ANZ had the biggest loss, down by a hefty 3.8%.
In terms of business satisfaction, the strongest performers were found to be the smaller banks with Bendigo Bank taking the lead with an impressive rating of 81.1%, followed by Suncorp and Macquarie Bank which scored ratings of 77.7% and 73.7% respectively.
These latest findings reveal that the connection between business customers and the major banks is weakening, with around one-third to a half of interviewees stating they don’t regard them as their main financial institution (MFI).
“With a generally increased focus by banks on retaining and growing business banking customers, it is worth looking first at the potential of their existing customers that have a relatively weak commitment to their bank,” said Norman Morris, Industry Communications Director Roy Morgan Research.
According to Morris, this growing lack of commitment to the big banks can be attributed to the overall lower satisfaction levels, after it was found that customers who don’t regard them as their MFI recorded a lower satisfaction rating.
“The low satisfaction level of business customers compared to personal customers is a major issue facing banks but the additional problem in need of attention is that non-MFI business customers have even lower satisfaction levels,” he said.