Survey Results – Australia
The following is a summary of the results of the Better Banking survey. It is clear that Australians are still not happy with the direction and practices of our major banks in particular.
If you would like a copy of the full results of the survey, please email Leanne.shingles@fsunion.org.au
Respondents primary bank
Primary Bank
26% of respondents mainly banked with the Commonwealth, 15% with Westpac, 14% ANZ and 12% NAB. 11% said they banked with another bank or financial institution – the main one mentioned here was the Bendigo Bank. 10% mainly banked with a credit union.
Length of relationship with primary bank
Nearly half (47%) had been with their primary bank for more than 10 years. 31% had been with their primary bank for 5 years or less.
61% of Commonwealth bank customers had been with that bank for more than 10 years. Only 22% of users of other banks had been with their bank for more than 10 years.
Change of primary bank
39% said they had changed their main bank in the last 10 years. A further 11% said they would like to change.
Those using other banks were most likely to have changed. Customers of the Commonwealth (60%) and credit unions (56%) were least likely to have changed banks. 60%of respondents without any debt had not changed their bank.
17% of Westpac customers said they would like to change their bank.
Reason for changing bank
49% said they changed banks to get a better deal and 25% said they had a bad experience with their previous bank.
Customers of other banks were most likely to have changed to get a better deal (59%), Westpac customers least likely to change for a better deal (36%).
General questions about banking
Satisfaction with their bank
42% were satisfied with their bank and 29% dissatisfied. Those most satisfied were customers of credit unions (62%), other banks (60%) and NAB (47%). Westpac customers were most dissatisfied (42%). Those without any debt (52%) were more satisfied than those with debt (40%).
Direction of bank
25% thought their bank was moving in the right direction, 38% in the wrong direction. Those most likely to think their bank was moving in the right direction were customers of NAB (43%), other banks (36%) and credit unions (36%). 56% of Westpac customers thought their bank was moving in the wrong direction.
The performance of banks in general
Overall, banks were thought to be improving in terms of new technologies (56%) and offering a greater range of financial products. However, they were thought to be getting worse in terms of maintaining a balance between profits and affordability (63%), being a valued member of the community (42% and showing a commitment to employing Australians (42%).
Technology and customer service improvement
42% thought bank customer service has got worse, 24% think it has improved and 34% say it has stayed the same. Credit unions customers are most likely say it has got worse (49%) – this suggests they were talking about banks in general rather than their own credit union. Westpac customers were least likely to say customer service had improved (19%).
Debt
Type of Debt
68% of respondents have credit card debt and 62% have a mortgage.
Customers with “other banks” were a little more likely to have mortgages (67%) and Westpac customers more likely to have credit card debt (73%).
56% of respondents with a mortgage are aged 36-55. 43% of those with personal loans are aged under 35. Those without debts tend to be older – 36% are aged over 55.
Level of comfort with debt
45% say they are uncomfortable or very uncomfortable about their level of debt. 31% are comfortable/very comfortable. 58% of those with personal loans are uncomfortable.
Reason for concern over debt
The major reason for feeling uncomfortable about debt levels is a concern about rising interest rates (43%). Those with personal loans are more concerned about the size of their debt.
Issues with primary bank
Debt Selling
The above results show strong negative feelings about the banks’ focus on selling products at the expense of providing customer service.
In particular, 91% agree that “Bank workers should be paid for providing professional customer service, not just selling products“ and 88% agree “If a workers’ salary is tied to selling products, I’d be less likely to see their financial advice as impartial“.
Most (59%) were surprised that bank workers’ salaries are tied to how many products they sell and 30% agreed that “there is nothing wrong with a worker getting commission for selling credit cards or other financial products” (50% disagreed).
There are similar concerns about selling products across all bank customers.
Customer Service
69% disagree that fees don’t bother them as long as they get better service. More than half (57%) agree that they always have to wait in a queue and 46% agree that there is never enough staff. 31% agree that are always under pressure to take another product.
Queuing is most common with St George (67%) and Westpac (66%) and staff shortages at NAB (54%) and Westpac (54%). Commonwealth customers feel most pressured to take other products (42%) and NAB customers least concerned about fees.
Interest rates
79% agree that they would be more likely to vote for a political party promising to increase regulation around interest rates.
Only 10% don’t mind paying higher interest rates for good service – 78% disagree.
66% agree that regulating interest rates is an issue that would influence their vote.
Interest rates is a more important issue for St George customers and less important to NAB customers.
Profits/CEO Salaries
There was very strong agreement that banks should let customers know if personal data is being sent overseas (87%) and that banks should balance their corporate interests with Australia’s interests (81%). A substantial majority (70%) also agreed that it’s time for the government to cap bank executive salaries.
Respondents were divided over whether highly profitable banks are good for our economy (41% agree/29% disagree) and running a big business like a bank is hard work and CEO’s deserve to be paid very well (36% agree/46% disagree).
Responsible lending
There was strong support for the Government regulating bank lending practices. – in particular, for rules to prevent high-risk banking activities (77%) and tougher regulation to stop personal debt getting out of control (76%).
This is of more concern to customers of St George.
Charter for Better Banking
Charter for better banking
There was overwhelming support for all components of the charter for better banking (from 79% to 90%).
