Banking customers 'losing faith in their provider'

A new study conducted by Roy Morgan Research has shown that banking customers are losing faith in Australia's major institutions.

The organisation's Customer Satisfaction – Consumer Banking in Australia monthly report indicated that confidence levels fell by 0.3 per cent among people who hold bank accounts with the most established companies.

Industry communications director at the firm Norman Morris believes that smaller lenders are starting to catch up with their more illustrious rivals.

A lot of people are upset that many banks failed to pass on recent cuts to interest rates sanctioned by the Reserve Bank of Australia.

New legislation is scheduled to take effect from July 1st, which will make it easier for people to switch providers. Mr Morris believes that this could be a pivotal moment.

"It will be interesting to see if the alternatives to the big four (including Building Societies and Credit Unions) can capitalise on their clear leadership in customer satisfaction," he remarked.

Have a question about interest rates? Ask the money gurus at Mozo Answers.ADNFCR-1761-ID-801394319-ADNFCR