Peeved bank clients give minion the nod

By Richard Braddell

WELLINGTON - Big banks beware: customers' loyalty cannot be taken for granted - and when they go, they are looking to small players such as the TSB in Taranaki, a survey by the Auckland University marketing department has found.

Organised by Dr Mark Colgate and Bodo Lang, the survey is one of the few examples of publicly available research into customer attitudes.

With the exception of the Bank of New Zealand, the survey found that all the major banks - ANZ, ASB, National and WestpacTrust - had gone down in customer esteem, if only slightly on a similar survey last year.

More than 20 per cent of retail customers have considered moving in the past year, with 18 per cent still thinking of switching.

It is clear small banks are becoming much more popular. The TSB, which now operates nationally through a direct banking operation, is enjoying something akin to cult status, with 26 per cent of those considering switching saying they would make it their bank.

"I really did not expect that figure and I couldn't believe it," Dr Colgate said.

However, the survey is statistically sound, with 1400 retail customers and 1000 business customers questioned.

ASB and its internet bank, Bank Direct, are also popular among potential retail defectors, with 20 per cent and 7 per cent respectively viewing them as potential bankers.

But only 8 per cent would go to the BNZ and 5 per cent to WestpacTrust.

As with last year, ASB and National again topped the popularity stakes, scoring a first-equal on a combination of measures. Dr Colgate said ASB just headed off National in the retail stakes, while National was a shade better with business customers.

The BNZ, which got the wooden spoon for customer satisfaction last year, moved into a distinct middle position above WestpacTrust and ANZ, an improvement that probably reflects work put in by its chief executive of a year, Mike Pratt.

Also of interest is the surprising similarity between business and retail customers about their banks.

Both groups hate high fees, although business customers are more strident in that view, and both think the availability of bank staff inadequate.