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Westpac banks most wealthy customers out of big 4

— 1 minute read

New data has shown Westpac has the largest proportion of high-net-worth individuals (HNWs) out of the four major banks, with 35.6 per cent of its customers being in the wealthiest third of Australians.

The finding was included in new research from Roy Morgan, which has looked at consumer financial behaviour in the six months up to September.

While Westpac has roped in HNWs, Australians with the lowest net wealth were more likely to name CBA as their main financial institution, with 37.7 per cent of the Commonwealth Bank’s customers falling within the poorest 30 per cent of Australians.

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The wealthiest 30 per cent of respondents were found to be less satisfied with their bank, with 75.4 per cent being happy with their banking relationships, in contrast to 80.1 per cent of the middle 40 per cent being satisfied and 84.7 per cent of the bottom 30 per cent. 

Michele Levine, chief executive of Roy Morgan said the data shows net wealth has a clear relationship with banking satisfaction. 

“The drop in customer satisfaction which coincided with the banking royal commission was driven by the wealthiest 70 per cent of Australians, with the poorest 30 per cent showing relatively little change over time,” Ms Levine said.

Roy Morgan reported the wealth-linked gap in banking satisfaction levels has grown over time. 

In 2013, the satisfaction level of the wealthiest Australians was 80.8 per cent, only 2 per cent less than 82.8 per cent of the poorest Australians. In six years, the difference has more than quadrupled to 9.3 per cent. 

The gap in satisfaction between the middle 40 per cent and the wealthiest 30 per cent has also steadily grown apart, opening up a gap of 4.6 per cent.

 

Westpac banks most wealthy customers out of big 4
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Sarah Simpkins

Sarah Simpkins

Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth. 

Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio. 

You can contact her on [email protected].

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