Industry head unsurprised by customers' high level of trust
Customer-owned banks as a group were the most trusted by banking consumers, recording a higher net trust score than any individual bank in Australia, according to Roy Morgan’s Customer Owned Banking Association (COBA) – Trust and Distrust Report.
COBA members registered far more trust than distrust, despite operating in an otherwise deeply distrusted sector, and with a collective net trust score that was higher than that for Australia’s most trusted non-mutual bank, the report showed.
Out of 26 industries measured, the entire banking sector ranked 22nd. In contrast, the customer-owned banking sector as a “sub-industry” placed seventh.
The report also found a total 25 of COBA’s member brands were mentioned unprompted by respondents in the Roy Morgan Risk Monitor. This included Bank Australia, Bank First, Great Southern Bank, Heritage and People’s Choice, IMB, and Police Bank.
In a media release, COBA lauded the findings as a reflection of the relationships its members form with their customers – relationships, it said, that “focus on putting customers first through competitive rates, personalised service, and a strong community commitment.”
“It’s not surprising that our people-first approach translates into high levels of trust,” COBA CEO Mike Lawrence (pictured above) said. “This is a natural extension of our customer-centric philosophy. At every juncture, our members place their customers’ needs first and not only do our banks hold more consumer trust; they also have the most satisfied customers.”
Main financial institution (MFI) customers of the mutual sector had the highest satisfaction ranking of any banking customer in Australia, at 91.6%, according to Roy Morgan’s Customer Satisfaction in Banking report. That figure is 14.2% higher than the big four banks in the six months to June 2022, Lawrence said.
“Many customer-owned banks go above and beyond to support regional communities,” he said. “Where possible, customer-owned banks are innovating to keep branch services open, including partnering with communities to operate co-owned community branches or co-locating with government services. This kind of support is why Australians have high trust with customer-owned banks.”
Customer-owned banks now account for 70% of Australia’s total domestic ADIs and collectively hold more than $167 billion in assets, as of June.
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