Bank customers back to old habits
The net promoter scores of Australia's banks, as measured by Roy Morgan Research, have generally increased since the banking royal commission report was handed down in February. On Roy Morgan's analysis, based on face-to-face interviews conducted with bank customers, the NPS of Australia's banks as a whole was 8.5 in July, up 3.2 points over the last five months. Roy Morgan found that the bank sector's overall NPS scores - notably those of the majors - have returned to levels comparable to those at the time the royal commission was established in late 2017. In July the NPS of the major banks was 2.1, a rise of 3.7 percentage points since February 2019. They were led by CBA on 7.2, up 3.3 points since February. The other three big banks improved but are still in negative territory (ie more customers decline to recommend them than promote them). Despite the improvements the Big Four's result are, nevertheless, well short of their smaller rivals: Teachers Mutual Bank sets the pace with the industry's highest NPS of 52.6, up 13.5 pts since February. Other highly ranked banks include ING on 52.2 (up 0.5 pts), Bank Australia on 50 (up 23.2 pts), Heritage Bank on 46.9 (up 3.3 pts), and Greater Bank on 32.9. The shine diminished for most of the leading regionals, with MyState the most highly regarded of this group by its customers on 41.3 (a decline of 8.3 pts), followed by Bendigo and Adelaide Bank on 32.9 (down 1.1 pts) and Bank of Queensland 18.3 (down 0.7 pts).The NPS upsurge for the Big Four was reflected in improved customer satisfaction, which reached 76.1 per cent in July, up by 0.8 percentage points since February, led by increases for Westpac (up 2.3 percentage points) the CBA (increased 1.0 point), ANZ (up by 0.9 point).Michele Levine, Roy Morgan CEO, warned against complacency. "The news last week that ASIC will be taking the NAB to court for alleged breaches of the law in a program rewarding people with commissions for new lending suggests the banks are still not entirely out of the woods yet," she said.