Mortgage holders rate big four banks in the negative

by Miklos Bolza10 Mar 2017
Mortgage customers have rated each of the big four banks negatively at levels lower than non-mortgage customers, according to the latest research from Roy Morgan.

Analysts looked at the banks’ Net Promoter Scores (NPS) which measure how loyal customers are to a particular firm.

Commonwealth Bank of Australia (CBA) was the best performer amongst the major banks with an NPS of minus 12.7. This was followed by Australia and New Zealand Banking Group (ANZ) with minus 13.8, Westpac with minus 20.4 and National Australia Bank (NAB) with minus 20.7.

The non-majors scored better with NPS’ as well as satisfaction levels. ING Direct boasted an NPS of plus 3.4 and satisfaction levels of 96.3% for mortgage customers while Bendigo Bank received an NPS of plus 32.2 and a satisfaction level of 93.2%.

Satisfaction by mortgage holders with the big four was at 77.4% in the six months prior to January 2017. This was lower than the 80.7% found amongst non-mortgage customers at the major banks.

Breaking this down for each major bank, Roy Morgan found the satisfaction levels for mortgage customers were as follows:
 
  Satisfaction in six months prior to Jan 2017 Satisfaction in six months prior to Jan 2016 Percentage change
CBA 79.7% 80.2% -0.5%
ANZ 76.4% 73.7% +2.7%
Westpac 75.4% 79.8% -4.4%
NAB 76.3% 78.8% -2.5%

“Despite home loan rates having been low for a considerable time, it is somewhat surprising that mortgage customer satisfaction remains lower than that of other customers, who are likely to be adversely impacted by low deposit rates,” said Norman Morris, industry communications director at Roy Morgan Research.

“The smaller banks have shown that it’s possible to achieve much higher satisfaction levels among mortgage customers than those achieved by the majors, even though they’re operating in the same interest-rate environment.”

Related stories:

Clients “less happy” with online brokers

Discontent rife among major banks’ most valuable customers

Over 300,000 Australians have no home equity

COMMENTS