Banks working harder to keep clients happy

By KEVIN TAYLOR

New Zealand banks have dramatically lifted their performance in the past year, a survey of customer satisfaction has shown - and the People's Bank may be part of the reason.

The annual University of Auckland business school survey showed overall satisfaction of residential and business customers had increased.

The survey was carried out by the school's Dr Mark Colgate and Bodo Lang. It asked 1285 residential customers about their perceptions of New Zealand banks and their opinion of the People's Bank. They also polled 1500 businesses.

Overall residential customer satisfaction rose from 63 per cent last year to 69 per cent this year, business satisfaction from 59 to 71 per cent.

Dr Colgate said the dramatic improvement in satisfaction had probably affected the interest shown in the People's Bank.

Only 19 per cent of residential customers surveyed said they would consider doing business with the new bank - down from 40 per cent last year.

The new bank unveils its look and branding in Wellington today.

Of the existing banks, ASB was rated top for the fourth year running at 84 per cent satisfaction, up 5 percentage points on last year.

National Bank was second at 78 per cent customer satisfaction, up from 74 per cent. BNZ was again third, at 64 per cent.

WestpacTrust - which on Friday announced a record profit of $465 million - made the biggest satisfaction gains, up 14 percentage points on last year to 60 per cent.

The study's authors said WestpacTrust's gains were "remarkable".

Mr Lang said that, at last, some of the banks had really started taking customer satisfaction seriously.

ANZ was still last, but had improved its customer satisfaction rating by 2 percentage points to 53 per cent.

Outside of the five major banks, the TSB was still proving a worthy competitor, the study said, with a growing market share and "remarkable" 95 per cent satisfaction.

But Dr Colgate said that although TSB had done a great job with customer satisfaction, it still held only 2 per cent market share.

He said it took years for banks to build their customer bases.

The survey showed - unsurprisingly according to the authors - that customers were most unhappy with fees.

Only 37 per cent thought the service they got from their bank was worth the fees paid.

Customers were very happy with the friendliness of staff and their willingness to help, though.

Meanwhile, ASB said on Friday that it was introducing a new transaction account with lower fees for Eftpos use - but at the same time raising other fees. The bank said the new account would be available from November 19 and was aimed at frequent electronic banking users.

Eftpos transactions will cost 20c in the new Streamline account - lower than other ASB accounts, but on December 1 ATM fees will rise from 35c to 50c.

nzherald.co.nz/peoplesbank