Consumer NZ says no bank has earned one of its People’s Choice awards for customer satisfaction this year.
Photo: RNZ / Supplied
No bank has earned one of its People’s Choice awards for customer satisfaction this year – the first time in 10 years that no bank has been able to separate itself from the pack, based on a survey of 1958 New Zealanders.
Consumer chief executive Jon Duffy said the survey showed widespread dissatisfaction with banks.
“Everyday banking hasn’t kept pace with what customers expect.
“Many customers don’t feel they’re getting fair value, especially when it comes to fees, interest rates and how banks respond when something goes wrong.”
He told Morning Report that dissatisfaction rarely turned into action, as only 4 percent of those surveyed switched banks in the past year.
If more customers started shopping around, that would force banks to start offering more competitive prices and better service, Duffy said.
“If they knew that there was a chance that they’d lose customers on the back of poor customer service and poor value for money, that would incentivise them to act better.
“By always keeping an eye out for the best deal and moving when you find a better one, New Zealanders will find they have more options and better leverage.”
Another issue consumers voiced was that many banks took too long to respond when issues were raised, Duffy said.
“If someone has an issue with their banking, perhaps maybe they’ve been involved in a scam or something like that, getting a response from their bank is too slow.”
Westpac ranked lowest of all banks for responsible lending, value for money, timely responses, fees and charges, phone banking, branch banking, and the number of customers rating themselves “very satisfied”.
“Probably the one that would be most concerning for Westpac is the value for money area… Westpac is really seen as not value for money.”
Kiwibank ranked below the sector average of 75 percent in trust, at 70 percent.
On a more positive note, he said the Co-operative Bank had performed best in terms of customer service.
“Over the history of this award, it’s often the smaller banks that have done better than the larger banks, simply because they’re a bit scrappier – they’re actively trying to get your custom.”
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