Australian banks lose out with customers

MELBOURNE - Customer satisfaction with the major banks took a tumble in the March quarter, coinciding with a growing number of Australians who intend changing their main financial institution (MFI).

Neilsen Media Research found customers of the five largest banks who were very satisfied or quite satisfied with their MFI fell to an average of 81.2 per cent in March compared with 86.3 per cent in the December quarter.

Neilsen said the largest decline was with the Commonwealth Bank of Australia which lost 8.2 per cent to 75.9 per cent after a record breaking run of nine consecutive quarters of improvement.

St George slipped 6.3 per cent to 83.4 per cent, National Australia Bank gave up 6.2 per cent to 77.3 per cent while Westpac retreated 4.1 per cent to 80.9 per cent. ANZ Banking Group eased just 0.3 per cent to 88.5 per cent. The big five Australian banks have New Zealand units.

Neilsen director Stuart Jamieson said the decline in customer satisfaction coincided with a rush by customers to switch banks.

He believed one reason for the switch could be the unusually high levels of marketing activity in recent months as banks fight aggressively for new customers.

Mr Jamieson said after several quarters of declining bank-switching, "customers were like overripe fruits hanging on the tree".

"The bombardment of marketing and sales activity appears to have shaken loose many of them and created some great opportunities to win new customers over the next few months," Mr Jamieson said.

He said ANZ strengthened its lead in the March quarter as the most preferred bank with evidence that ANZ customers were more prepared to recommend their bank. Regional player Bendigo Bank topped the list in customer satisfaction with 92 per cent of its clientele ready to recommend it to others.

- AAP