Modest fall in customer satisfaction after 'out of cycle' increases

Customers have shown their displeasure at the banks' decision to make out-of-cycle mortgage rate increases in February by marking the banks down in the latest Roy Morgan survey. However, the decline in satisfaction scores was modest.

Roy Morgan's retail bank customer satisfaction ratings fell in February - the first overall decline since March last year. The overall ratings fell 30 basis points, from 79.6 per cent in January to 79.3 per cent last month.

ANZ, which led the move to increase rates, was marked down 70 basis points.

Surprisingly, National Australia Bank, which increased its standard variable rate by nine basis points (compared with ANZ's move of 15 basis points), was marked down by 80 basis points in the survey.

Roy Morgan Research's industry communications director, Norman Morris, said NAB's non-home loan customers were responsible for the downgrade.

Westpac lost 50 basis points and Commonwealth Bank lost 30 points.

NAB maintained its lead among the Big Four, with a satisfaction rating of 78.7 per cent. ANZ has a rating of 77.9 per cent, Commonwealth has 77.3 per cent and Westpac has 75.8 per cent.

The institution with the highest score is Teachers Credit Union, with a rating of 93.2 per cent. Newcastle Permanent Building Society has a rating of 93 per cent, Heritage Building Society has 91.9 per cent, Victoria Teachers Credit Union has 91.7 per cent and ING Direct has 90 per cent.