Banking survey 'wake-up call' to industry

Some banks are pushing all the wrong buttons with their customers, says the Better Banking survey.

Survey results released today showing a high levels of customer dissatisfaction with Australian-owned banks are a wake-up call to the industry, says the finance sector union Finsec.

Finsec believes the survey also highlights the need for the Government to step in to make banking in New Zealand fairer.

Trans-Tasman public polling carried out by Finsec and the Finance Sector Union in Australia showed a public backlash against the banks and high levels of support for a charter of Better Banking being proposed by the two unions.

"It is time for the banking industry to change. More customers are dissatisfied than satisfied with their banks," said Finsec campaigns director Andrew Campbell.

"Customers say they want better staffing levels and an end to the target-based pay systems that reward bank staff for selling debt products.

"It is time for the banks to listen. They are huge players in our economy so it is appropriate they operate in the best interests of our country.

"Customers are saying the banks need to change and the Government needs to step in too."

Mr Campbell said the current approach that saw branches understaffed, workers pushed to sell debt, jobs sent overseas to be done cheaper while interest rates go up, bank CEOs get huge pay packages and massive profits that go offshore was unsustainable and must change.

"The New Zealand public are fed up with the banks' behaviour and want the Government to do something about it. This survey shows strong support for better interest rate controls, a prohibition on off-shoring jobs and better controls over staff pay systems," he said.

The Better Banking survey showed one in 10 customers want to change banks but feel trapped by the cost and time needed to move accounts.

But most customers indicated they were happier with new technology that made their financial lives easier.

ASB came out on top, followed by BNZ, National, Westpac, with ANZ at the bottom of the list.

The survey also showed that 86 per cent of customers wanted banks to stop off-shoring New Zealand jobs, while 42 per cent believed their bank was getting worse at showing a commitment to employing New Zealanders.

Some 78 per cent of people surveyed thought there should be changes to how bank staff were paid and that sales targets should be de-linked from remuneration.

The survey also showed 92 per cent of customers said staff should be paid for providing professional customer service, not just selling products, and 85 per cent said they would be less likely to see their financial advice as impartial if it is not.

While 89 per cent of customers agreed that banks should balance their corporate interests with New Zealand's interests, 81 per cent of customers supported new global rules to prevent high risk banking activities.

Of those surveyed, 52 per cent said they always had to wait in a queue or on hold for service, and 37 per cent agreed that customer service had got worse.

- NZPA