Source: Roy Morgan Single source (Australia). May 2016 – April 2021, Average interviews per 6 month period, n = 6,152. Base: Australians 14+ with a mortgage, 6 month moving average. * Net Promoter Score and NPS® are registered trademarks of Bain & Company, Inc., Mr. Frederick Reichheld and Satmetrix Systems, Inc. Based on a score of 9 or 10 minus 1 to 6 on a ten point scale, where a is very unlikely to recommend to a friend or colleague and ten is very likely.
The Net Promoter Score (NPS®) measures customers’ willingness to recommend a brand and since the COVID-19 pandemic hit Australia there have been significant increases for the Big Four banks, with customers now much more likely to recommend their bank to others than they were a year ago. This is particularly the case with clients with a mortgage.
Among mortgage customers, ANZ saw the biggest improvement over a year ago and increased its NPS® of 29.7 points for a score of 15.4 in April 2021 – the highest of the big four banks.
NAB increased its NPS® among mortgage customers 22.1 pts to 9.6 and is now just behind CBA at 10.4, an increase of 16.3 pts. Westpac has also seen a resurgence of the NPS® to now stand at -6.9, up 5.7 pts from a year ago.
There are three banks in the top ten (by market share) that stand out with higher scores than their rivals led by ING with a score of 42.9, and an increase of 16.6 pts from there is one year old. In second place and well above the industry average is Bendigo Bank with 26.0 just ahead of Bank of Melbourne with 25.9.
Top performers have stayed well above the bank’s current average NPS® from 10.1.
The data for the report is gathered through in-depth interviews Roy Morgan conducts with more than 50,000 consumers each year as part of an ongoing two-decade survey, allowing for an accurate understanding of long-term trends. It complements Customer Satisfaction, which Roy Morgan also measures.
Net Promoter Score (NPS®*) by mortgage clients (2016-2021)
Source: Sole source Roy Morgan (Australia). May 2016 – April 2021, Average interviews per 6 month period, n = 6,152. Base: Australians 14+ with a mortgage, 6 month moving average. * Net promoter score and NPS® are registered trademarks of Bain & Company, Inc., M. Frederick Reichheld and Satmetrix Systems, Inc. Based on a score of 9 or 10 minus 1 to 6 on a ten point scale, where it is very unlikely that the one would recommend to a friend or colleague and ten is very likely.
Satisfaction with big banks increased during pandemic as other banks produce mixed results
The big four banks all recorded increases in customer satisfaction of their main financial institutions (MFIs) customers during the year through April 2021, led by NAB which increased satisfaction by 3.3% points to 81.7% and ANZ which increased by 2% points to 78.6%.
There were also increases for Commonwealth Bank, up 0.1% to 80.9% and Westpac, up 0.1% to 76.2% from April 2020.
Results for other major banks were mixed with strong increases for Bank of Melbourne, up 9.6% to 90.2% and St. George, up 4.4% to 86.1% while Macquarie saw the largest decline, down 3.3% to 88.6%.
However, despite the move among other banks, the top three banks are unchanged from a year ago with Bank Australia in first place with 95.5%, down 0.5% from a year ago. year, just ahead of ING with 94.2%, an increase of 0.2% point. .
Bendigo Bank is again in third position at 91.4%, down 0.6% point since April 2020.
Customer satisfaction with banks as a whole increased from 81.3% in April 2020 to 82.8% in April 2021.
Consumer banking satisfaction – Main Financial Institution (MFI)
Source: Sole source Roy Morgan (Australia). May 2016-April 2021. Average interviews per 6 month period, n = 23,972. Based: Australians 14+ with a major financial institution (MFI), 6 month moving average.
The latest consumer banking satisfaction and Roy Morgan’s Net Promoter Score (NPS)®) the results underscore the successful response of Australia’s largest banks to the threat posed by the COVID-19 pandemic, says Michele Levine, CEO of Roy Morgan:
“About 18 months ago, rumors started to emerge of a ‘new coronavirus’ in China that was highly infectious and potentially dangerous. Within months, the new virus caused unprecedented lockdowns in large parts of the world, including Australia, causing significant societal upheaval and precipitating Australia’s first recession in nearly three decades.
“The economic turmoil has put millions of Australians out of work and raised fears that Australia’s banking system will come under enormous pressure as new unemployed people start to default on their loans in droves. Fortunately, none of this happened.
“The hundreds of billions of dollars in support provided by the federal government – especially in the form of the $ 90 billion JobKeeper wage subsidy – have kept people in precarious employment tied to their jobs and Australian banks have responded to the crisis by allowing financially troubled customers to defer loans for at least six months, waiving the costs of debt consolidation and loan restructuring.
“The banks ‘response was so effective that not only was the prospect of a devastating financial crash wiped out, but against the predictions of many, banks’ perceptions improved during Australia’s first recession in nearly thirty years. years.
“The big four banks increased their net promoter scores (NPS®) during the pandemic. The NPS® measures the willingness of customers to recommend a brand to others. The largest increase in NPS among mortgage customers® was for ANZ, up 29.7 pts to 15.4 in April 2021. There were also massive increases for NAB – up 22.1 pts to 9.6 and CBA, up 16.3 pts to 10.4.
“At the same time, customer satisfaction from the Big Four banks also increased thanks to NAB, up 3.3% from a year ago to 81.7% among their major financial institutions (MFIs) clients. NAB is now ahead of CBA at 80.9% (+ 0.1% point), ANZ at 78.6% (+ 2% points) and Westpac at 76.2% (+ 0.1% point).
“While it is important to measure the bank NPS® and satisfaction, it is essential that banks understand what drives these results in order to direct resources to the areas that make the most difference. We cover them in detail in the Roy Morgan ‘Advocacy Factors – Consumer Banking Market Report‘ and the ‘Factors of Customer Satisfaction – Consumer Banking Market Report”, But in summary they include“ customer experience ”,“ reliability and security ”,“ interest rates, fees and charges ”,“ product offering ”and“ online banking ”. line “.
“These reports also provide a detailed analysis of the advocacy and satisfaction factors for each of the major banks, but even so, they represent only a small portion of the consumer credit data available from Roy Morgan.
“The comprehensive database enables a truly holistic and unique understanding of consumer financial behavior and trends, collected from 50,000 interviews per year over more than two decades, including the full range of customer metrics such as customer penetration. Customers, Market Share, Portfolio Share (SOW), Product Per Customer (PPC), Intent to Change, Advocacy, Satisfaction and NPS®.
“To find out more, ask Roy Morgan.”
NPS®: Net Promoter Score and NPS are registered trademarks of Bain & Company, Inc., Mr. Frederick Reichheld and Satmetrix Systems, Inc. Based on a score of 9 or 10 minus 1 to 6 on a ten point scale, where it is very unlikely to recommend to a friend or colleague and ten is very likely.
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