The satisfaction of Australian business banking customers in May increased by 0.2 per cent to 65.8 per cent, according to research by Roy Morgan.
In a recent research report, Roy Morgan found that while business satisfaction with banks showed a small improvement in May, the level is still below the peak of 69.6 per cent in November 2014.
Westpac remains the best overall performer among the big four banks in terms of business customer satisfaction – sitting at 68.2 per cent.
Westpac is followed by NAB at 64.9 per cent, CBA at 64 per cent and ANZ with a satisfaction level of 60.7 per cent. Over the past 12 months, NAB is the only institution within this group to record an improvement – up 1.4 per cent.
Roy Morgan Research industry communications director, Norman Morris, said only one in five business customers is ‘very satisfied’ with their bank, which is a concern in terms of advocacy levels.
Roy Morgan also found that one-third to half of each of the major bank’s business customers don’t regard them as their main financial institution (MFI).
According to the research firm, this group holds a significant opportunity for growth.
“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 banks.
“These are customers that don’t regard them as their MFI but who might be converted if their banks didn’t overlook them so often in their effort to attract new customers,” he said.
The report found that business customers who do not regard their business banking institution as their MFI, have much lower satisfaction levels than MFI customers.
Moreover, “while MFI business customers are more satisfied than others, a relatively low proportion of them are ‘very’ satisfied," Mr Morris said.
Mr Morris said this is a problem that the institutions need to address.
Stimulate new ideas. Stimulate new thinking. Top up your CPD and hear from industry experts with InvestorDaily’s Knowledge Centre. Keep up to date with the latest trends and reforms, all while adding to your CPD. Explore the knowledge centre Knowledge Centre now.
Despite the Australian economy’s ongoing rapid recovery, an Australian equity head believes GDP growth will “fade” in 2022. ...
The next financial year could see a “new record year” for dividends as the Australian economy continues its recovery from the COVID-19 p...