Few bank customers switch, despite royal commission
The proportion of bank customers who assessed themselves as "satisfied" with their bank declined from 81.2 per cent in the six months to January 2018 (prior to hearings commencing for the Royal Commission into) down to 78.9 per cent in the six months to August 2018. This was unchanged from July. A decline of just 2.3 percentage points since January shows a clear majority are still satisfied with their bank, despite the negative news from the royal commission, and was one of the key findings in the latest Roy Morgan monthly report."A lot of the focus over the last two decades has been on satisfaction with banks which has improved considerably but the level of dissatisfaction and indifference also needs to be monitored closely," the market research firm noted.On Roy Morgan's numbers, the level of dissatisfaction with banks was low and has increased only marginally from 4.9 per cent in January - just prior to the royal commission - to its present level of 5.7 per cent. This does not make that measure irrelevant as the combination of the 15.4 per cent of bank customers who are indifferent to their relationship with their bank (i.e. neither satisfied or dissatisfied) and those who are dissatisfied (5.7 per cent), means that more than one in five (21 per cent) of bank customers pose a potential threat to customer retention, an increase from 18.9 per cent in January 2018 but well below the 2001 level of 40.1 per cent. "Given the continuing barrage of negative publicity from the royal commission and other issues including out of cycle loan rate increases, it is not surprising that satisfaction with banks has shown a small decline this year," Norman Morris, industry communications director at Roy Morgan said."What needs to be noted, however, is that contrary to all the negative reporting on banks, the clear majority of their customers are satisfied ... and that only around 6 per cent claim to be dissatisfied."Although satisfaction with banks overall has shown a decline during the royal commission, not all banks have moved the same way. Of the ten largest banks with local retail banking operations, the two best performers, ING with 88.8 per cent satisfaction and Bendigo Bank (88.4 per cent), did not show declines. ING in fact showed an improvement of 3.6 per cent points since January and Bendigo Bank remained unchanged.In contrast, satisfaction with NAB was down by 3.9 per cent points over this period, followed by Westpac (down 3.6 per cent points), ANZ (down 2.7 per cent points), Suncorp Bank (down 2.6 per cent points) and the CBA (down 2.5 per cent points). The CBA retained its position of having the highest satisfaction among the big four with 77.6 per cent, followed by the ANZ (75.9 per cent), NAB (75.2 per cent) and Westpac (74.3 per cent).