September 19th, 2024
Smaller banks in New Zealand continue to outshine their larger counterparts in customer satisfaction, according to the latest banking satisfaction survey conducted by Consumer NZ.
The Co-operative Bank and TSB once again received top marks, while larger banks like ASB and Westpac lagged behind, a Consumer NZ media release said on Wednesday.
Rebecca Styles, Consumer NZ's investigative team leader, praised the performance of The Co-operative Bank, which ranked first in all 13 major satisfaction areas, making it eligible for the People's Choice status for the second consecutive year. TSB also performed well, earning the People's Choice Award for the eighth year in a row, with high scores in value for money, call center service, and complaint resolution.
In contrast, Westpac, which holds a 19% market share, was the worst-performing bank in the survey for the second year running. Customers were disappointed with its branch and call center service, timeliness in responding to inquiries, and fairness when addressing consumer issues.
The survey also assessed New Zealanders' satisfaction with their KiwiSaver providers, with big banks falling short in this area as well. Simplicity, Milford Funds, and Generate Investment Management received the People's Choice seal of approval for 2023, indicating consistently high customer satisfaction levels. On the other hand, ANZ Investments and ASB Group Investments ranked near the bottom, with below-average scores in key performance measures.
Amanah Ethical NZ was identified as the lowest-ranked provider, performing poorly in updating customers about investments, providing access to account information, and dealing fairly with problems and complaints, according to Consumer NZ media release.
Consumer NZ's findings underline the importance of customer satisfaction in the banking sector, and smaller banks' ability to maintain high standards in this area continues to challenge their larger competitors.