Smaller banks outperform majors in customer satisfaction

Small and regional banks are performing strongly across multiple areas and are providing a higher and more consistent service across the board than major banks, making them more popular as decided by customers, according to J.D. Power.

J.D. Power senior country manager, Loi Truong, said that small banks had performed better in areas that were of most importance to customers and also had less customer-reported problems than the country's biggest banks.

"Smaller banks in Australia are able to provide a higher level of service… than the major banks, which along with improved transparency on fees, helps place them in a good position," he said.

Related News:

J.D. Power's inaugural study on customer satisfaction ranked account activities, account information, fees, facilities, product offerings and problem resolution, with satisfaction calculated on a 1,000-point scale. The study found a five per cent difference in favour of non-major banks for customers who had difficulties understanding account fees, while the average wait time at a non-major bank branch was three minutes less than at a major.

Heritage Bank ranked the highest in customer satisfaction for retail banking out of the non-major banks, with a total satisfaction score of 829. The leader of the major banks was Commonwealth Bank (CBA), with an overall score of 754.




Related Content

Key CBA executive departs

The Commonwealth Bank’s group general counsel and group executive, Group Corporate Affairs, Anna Lenahan is leaving the big banking group.She is the...Read more

CBA acting on RC advice recommendations: Comyn

The Commonwealth Bank (CBA) has expressed its total support for Banking Royal Commissioner Kenneth Hayne’s recommendations and signalled how it is a...Read more

Platforms blamed in CBAs FFNS delays

It took the Commonwealth Bank longer than expected to switch off some of the fee mechanisms which led to fee for no service because of its use of plat...Read more

Comments

Add new comment