Business not happy with big four banks
Satisfaction among the big four's business customers continued to slip in May after dropping in April for the first time since July 2011.
According to Roy Morgan Research's monthly report for Business Banking in Australia, business customer satisfaction has slipped 0.6% to 63.5% in May, compounding a 0.7% slip in April.
The big four's major problem is business customers' satisfaction with their loan arrangements which have now reduced to 58.6%, the report said.
Business satisfaction was lower for all banks than its personal customer satisfaction, which was approximately 14% higher. Smaller banks also declined in May, reducing by 1.0%.
"It would appear that the banks are doing a relatively poor job of meeting the more complex and potentially riskier needs of their business customers," Roy Morgan stated, noting poor ratings for following developments in the business and maintaining regular contact.
ANZ experienced the sharpest decline, dropping 2.4% in May and 3.5% over the year, while NAB made up the most ground over the year through increasing satisfaction by 3.0% to 64.7%.
Westpac led the market in May at 66.8%, followed by NAB at 64.7 %, Commonwealth Bank at 61.6%, and ANZ with 61.5%.
Westpac also led the pack in the 'micro' business segment at 67%, although NAB closed the gap somewhat over the past 12 months, improving by 2.7% compared to Westpac's 1.2% decline.
The CBA ranked fourth, which Roy Morgan said would greatly affect its business performance as 89% of businesses are in this segment.
However, CBA topped the list in the 'small' business segment, edging out Westpac and NAB. ANZ is still suffering from a 5% decline over the year which, when compared to NAB's improvement, puts them far behind.
Westpac's performance over the year has propelled it into first place among the medium to large segment, followed by ANZ, NAB and CBA.
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
