Customers get more satisfaction, with NAB and CBA rated best

THE big four banks managed to slightly improve their customer satisfaction rankings last month, although ratings are expected to come under pressure again after a decision by most to hold back some of the December cash rate cut.

By InvestSMART · 18 Dec 2012

By InvestSMART ·
18 Dec 2012

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Latest figures from Roy Morgan Research show the banking sector as a whole was again winning over customers after satisfaction rankings took a negative turn earlier this year because of mortgage rate pricing.

The November figures do not take into account the latest round of rate cuts where all the majors held back some of the Reserve Bank's 0.25 percentage-point cut.

Even so, they show first-placed NAB and second-ranked Commonwealth Bank, which for years lagged in customer satisfaction, have turned the tables on rivals.

NAB remains on top with a rating of 80.5 per cent, but the bank gained just 0.1 percentage point in November. CBA added 0.4 percentage points to come in at 79.5 per cent.

Westpac was third at 77.1 per cent (up 0.3 percentage points) while ANZ had the biggest lift for the month, with 0.6 percentage points, but still lags at 75.7 per cent.

After being top-ranked in customer satisfaction for more than seven years, ANZ became the laggard among the big four last May. The drop coincided with ANZ going it alone in setting interest rates.

ANZ, which reviews interest rates every second Friday of the month, last week said it would pass on 0.2 percentage points. This put it in line with rivals.

On an annual basis, ANZ is the only bank to have gone backwards. Its ratings are down 1.9 percentage points on the year, compared with Westpac's increase of 0.8 percentage points. CBA is up 2.6 points while NAB gained the most ground, up 3.2 points.

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Frequently Asked Questions about this Article…

Which of the big four Australian banks topped customer satisfaction in November?

According to Roy Morgan Research's November figures, NAB ranked first in customer satisfaction at 80.5%, followed by Commonwealth Bank (CBA) in second at 79.5%.

What were the November customer satisfaction ratings for NAB, CBA, Westpac and ANZ?

The November ratings were: NAB 80.5%, CBA 79.5%, Westpac 77.1% and ANZ 75.7%, as reported by Roy Morgan Research.

How much did each bank's customer satisfaction change month‑on‑month in November?

Month‑on‑month changes in November were small: NAB up 0.1 percentage point, CBA up 0.4 points, Westpac up 0.3 points and ANZ up 0.6 points.

How did the banks perform on an annual basis for customer satisfaction?

On an annual basis NAB gained the most at +3.2 percentage points, CBA was up +2.6 points, Westpac increased +0.8 points, while ANZ was the only one to decline, down 1.9 points year‑on‑year.

Do the November satisfaction ratings include the banks' recent decision to hold back some rate cuts?

No — the November Roy Morgan figures do not take into account the latest round of rate cuts where all the majors held back some of the Reserve Bank's 0.25 percentage‑point cut.

Why did ANZ's customer satisfaction fall and how has ANZ managed interest rates recently?

ANZ's drop coincided with the bank deciding to set rates independently; after falling behind the other majors, ANZ said it would pass on 0.2 percentage points, aligning it with rivals. The article notes ANZ reviews rates every second Friday of the month.

What does Roy Morgan Research say about the banking sector's customer satisfaction trend?

Roy Morgan Research's latest figures show the banking sector as a whole is winning back customers after an earlier dip tied to mortgage rate pricing, though ratings may face renewed pressure following decisions by majors to hold back some rate cuts.

Should everyday investors be concerned that banks holding back rate cuts will affect customer satisfaction?

The article notes ratings are expected to come under pressure after most banks held back part of the December cash rate cut. For investors this signals a potential change in customer sentiment to watch, but the November figures themselves do not yet reflect that latest round of decisions.