Satisfaction at customer owned banks on the rise

by Madison Utley29 Jul 2020

Customer owned banking institutions have continued to steadily climb in customer satisfaction, even during the COVID-19 pandemic, according to the latest Roy Morgan report.

The most recent figures show satisfaction with the mutual sector has climbed to 89.2%, up 0.7% on a year ago.

Bank Australia leads the pack, followed by Bank First, Beyond Bank Australia and Teachers Mutual Bank; Heritage Bank, Greater Bank and RACQ Bank are not far behind.

The Roy Morgan Customer Satisfaction report is based on over 50,000 face-to-face interviews with consumers in their homes; the latest iteration is for the six months ended May 2020.

According to Customer Owned Banking Association (COBA) CEO Michael Lawrence, the results show the sector’s commitment to prioritising the security of customers even through a health crisis.

“From the outset of COVID-19, our members have been on the front foot of customer care,” he said.

“They have proactively contacted customers at risk of vulnerability, responded to requests for assistance with respect and sensitivity, and have pivoted operations to remote work arrangements and digital capability where required, ensuring customers are never on their own.”

Other banks which received notable mention for their high level of customer satisfaction include Newcastle Permanent Building Society, People’s Choice Credit Union and Credit Union Australia.

The report from Roy Morgan is further corroborated by the latest edition of the Banking Brand and Trust Index, published by digital research house Glow.

According to the group’s tracking study conducted over the month of June, COBA members represented six of the 10 most trusted banking institutions in the country, with Heritage Bank, Greater Bank, RACQ Bank, Credit Union Australia and Beyond Bank Australia also featuring on their list.

“Rather than pay out shareholders, customer owned banking institutions reinvest profits back into benefits for customers through lower interest rates, lower fees and innovative technology,” said Lawrence.