The Big Four have recently hit a rough patch, with customer satisfaction levels dropping. But why the drop you ask?
It may have something to do with their gradual increase in home loan rates during 2015. Thankfully, our clients on fixed interest rates won’t need to worry about this. Unfortunately, this means their combined satisfaction rates improved by a mere 0.5% between 2014 and 2015.
Roy Morgan’s Single Source survey saw ANZ and Westpac’s levels drop to 0.3% and 1.0%. Their competitors NAB and CBA on the other hand weren’t too affected with their levels increasing by 0.6% and 1.4%, CBA clearly the big winner.
Now is the time for small lenders to share the spotlight and rightly so, with their satisfaction levels rising between 2.0% and 5.8%. So, if smaller lenders are currently making people happier does this mean the big banks are in danger?
The Big Four hold the majority of market share in the home loan industry, so the answer? No. What it does mean though, is smaller lenders are going to seem that much more appealing.
The World Retail Banking Report released in April last year saw a leap in customer planning to leave their primary bank. Unsurprisingly, Gen Y is heading the trend, with their trusty smartphones making home loan comparisons all the more easier. This news isn’t exactly unwelcomed by smaller lenders. Their not-so-subtle popularity increase has seen Teachers Mutual satisfaction levels rise to 5.2% and Bendigo Bank at 2.0%.
However, Norman Morris, industry communications director for Roy Morgan Research, believes we may yet see further increases in home loan rates. Whether he means the Big Four or smaller lenders is unknown, but for right now business for smaller financial institutions is at an all-time high.
Urban Home Loans
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