The ‘big four’ Australian banks — Westpac, Commonwealth (CBA), The Australian and New Zealand Banking Group (ANZ) and National Australia Bank (NAB) — popularity has risen to the highest rate ever recorded. Financial experts suggest that this may be attributed to the bank’s reducing their interest rates.
Customer satisfaction levels for the big four banks has been recorded at 81.6 percent in February of 2014. This level was the same in January, and is the highest level ever recorded by Roy Morgan research in 18-years. The survey recorded 50,000 people’s responses.
How Do the Big Four Banks Compare to Other Banks?
The big four banks recorded more than an 80 percent satisfaction level, while other banks scored 84.4 percent. The reason the big four banks are catching other banks in popularity is believed to be associated with recent interest rate cuts the big four have made to their fixed rate home loans.
Over the last 2 months, all of the big four banks have dropped their 1-year fixed rate home loan rates to 4.79 percent and their 2-year rate to 4.89 percent. The NAB and CBA have dropped their 3-year fixed rate to 5.14 percent, whereas the ANZ and Westpac have reduced their 3-year fixed rate to 5.19 percent.
These home loan rate adjustments have been made in order to keep the banks competitive in a market that is fiercely vying for new customers. Spokespersons for the big four banks say that their move is about offering their customers better value so that they can plan their budget for years to come.
How Do the Big Four Banks Compare With Each Other?
Of the big four banks, the CBA rates the highest in satisfaction. The CBA was given an 82 percent satisfaction rating, followed by the NAB with 80.3 percent, the Westpac was rated at 78 percent, and the ANZ at 77.9 percent.
Smaller banks, however, are undoubtedly the trend-setters. More than 10 others banks scored higher than the big four banks in levels of customer satisfaction. Teachers Mutual Bank led the way with a 91.2 percent satisfaction level.
Over the last year, the ANZ and CBA showed the greatest amount of improvement in satisfaction levels. Both banks had a 1.7 percent rise in satisfaction. The NAB had a 1.1 percent rise and the Westpac a 0.3 percent rise.
Industry communications director for Roy Morgan, Norman Morris, believes that home loan rates reductions over the last 24-months have driven up customer satisfaction levels. However, with no rate changes since August 2013, customer satisfaction levels have slipped. This may be one of the reasons that the big four banks have reduced the rate of their fixed-rate home loans.
Do you want to know more about the big four banks home loan rates? If so, then contact eChoice today.
Written by eChoice