One in five Aussies aren't satisfied with their bank

One in five Aussies aren't satisfied with their bank

The banking Royal Commission may have made an impact on what Australians think of their banks, with bank satisfaction levels declining by 4% over the first half of 2018.

According to the Roy Morgan Customer Satisfaction-Consumer Banking in Australia June Report, bank customer satisfaction dropped from 82.3% in January 2018 (prior to the Royal Commission), to 78.5% in May, before sliding even further to 78.3% in June – the lowest monthly satisfaction level since April 2012.

The report also found that 15.5% of bank customers are indifferent to their bank, while 6.2% are dissatisfied. This total of 21.7% of bank customers who are not satisfied with their bank was found to have increased from 17.7% in January 2018.

While the current level of bank satisfaction was found to be at its lowest level since April 2012, satisfaction levels are still well above the record low of 60% in January 2001, and above the long-term average of 73.8% since 2001. 

Which banks had the most satisfied customers?

Out of Australia’s ten largest banks by customer numbers, ING had the highest level of customer satisfaction, increasing by 0.5% points over the past 12 months to 88.6%. Other leading banks whose customer satisfaction improved included Bankwest (up 2.5% points to 83.8%) and St.George (up 1.2% points to 83.3%).

Other leading banks all saw declines in their level of customer satisfaction, ranging from falls of -0.2% points (Bank of Queensland, with 83.5% satisfaction) to falls of -3% (Suncorp Bank, with 80.1% satisfaction).

Out of the big four banks, Westpac experienced the smallest fall in satisfaction (-1.5% points to 76.4%), while CBA, NAB and ANZ all experienced falls in customer satisfaction of -2.7%.

Who are the least happy bank customers?

Roy Morgan industry communications director, Norman Morris, said that mortgage holders are the least satisfied bank customers, with their satisfaction levels generally coming in lower than those of non-mortgage holders:

“Declining satisfaction among home loan customers is a major contributor to the overall decline in customer satisfaction and is likely to be as a result of either increased rates or talk of rates being increased. This is likely to be having a negative impact in an environment where there hasn’t been any increase in the official cash rate by the Reserve Bank for a considerable time.”

Bank Mortgage customers satisfaction level (change since June 2017) Non-mortgage customers satisfaction level (change since June 2017)
Bendigo Bank 89.5% (-7.4% points) 87.5% (+0.2% points)
Bankwest 81.9% (-0.5% points) 84.4% (+3.4% points)
St.George 81.0% (-5.3% points) 83.9% (+2.7% points)
Suncorp Bank 80.4% (-3.2% points) 80.0% (-2.9% points)
Westpac 73.4% (-3.4% points) 77.0% (-1.1% points)
ANZ 73.4% (-2.5% points) 76.8% (-2.8% points)
CBA 73.2% (-5.1% points) 79.2% (-2.3% points)
NAB 71.9% (-5.3% points) 78.3% (-2.3% points)
Total banks average 75.7% (-4.0% points) 80.0% (-1.2% points)

Source: Roy Morgan

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Learn more about bank accounts

How do I close a bank account?

Closing a bank account is one of those tasks that’s easy to put in the too-hard basket. There are quite a few steps involved, some which may require you to hang on the phone for a while.  

Here’s a handy checklist of items to tick off, so the job gets done quicker. If you don’t do your banking online, the following steps can also be done at a branch.   

  • Cancel any scheduled or recurring payments
  • Update your direct debit details (such as loan repayments) with creditors
  • Export your payee address book (to keep a record of saved third-party bank account details)
  • Transfer the balance of your account (to the new bank account)
  • Close your account online, or by calling the bank or visiting a branch

Can foreigners open bank account in Australia?

If you’re migrating, studying or working in Australia, you’ll be pleased to know that you can open an Australian bank account. For the most part, opening a bank account in Australia is a simple process which starts by comparing the types of bank accounts foreigners can open in Australia.

Once you’ve found a bank account that suits your needs, you can start the application process.

When you apply for the account, you’ll need to provide proof of ID which may include your passport, overseas ID or credit card. You may also need to provide a copy of your visa and proof of address in Australia.

Depending on the bank and the type of account you choose, you may be able to apply for the account online or over the phone before you arrive in Australia.

How can you cash a cheque without a bank account?

You can cash a cheque without a bank account if you visit the bank that issued the cheque. For example, if somebody sends you a cheque from Bank X (as written on the cheque) and you visit Bank X, it’s likely that Bank X will let you cash the cheque – provided the person who wrote the cheque has enough money in their account. Bank X would probably charge you a fee for the service.

Do you need a bank account to sell on eBay?

You don’t need a bank account to sell on eBay. But if you don’t have a bank account, you must provide either a credit card or debit card.

How do I open a bank account for a baby?

If you’ve just welcome a new baby into the world, congratulations. Opening a bank account for your child can be a wonderful first gift.

Before you can open your child an account, you’ll need to have a birth certificate or passport for your baby.

As the parent or guardian, you’ll also be listed as a joint holder on the account. This means you’ll need to have proof of your identification and address (a driver’s licence, passport, birth certificate or Medicare Card).

Many banks and credit unions offer baby banks accounts. Usually, you can apply online; otherwise you can head into a local branch or office with your documents.

How do you set up a bank account online?

Once you’ve compared bank accounts and found the right one, the process of opening a bank account online is quite simple and can be done in around 10 minutes.

To set up a bank account online, you’ll need to prove your identity and provide an approved form of ID as well as your tax file number (TFN).

If you’re a new customer of the bank, you’ll need to verify your identity and potentially upload documents before you can complete your online application.

Once your ID has been verified and you’ve set up your bank account online, you should receive your bank cards in the mail along with your PIN and any other account details.

Are bank accounts frozen when someone dies?

Yes, Australian bank accounts are frozen when someone dies. If you want to close the account of somebody who has died, you might have to provide proof of death and a copy of the will. You might also have to prove your relationship to the deceased person.

If you have a joint bank account with somebody who has died, you will generally be entitled to all the money in the account. Again, you might have to provide proof of death if you want to change the bank account from a joint account to a one-person account.

How do you open a bank account in Australia?

Opening a bank account in Australia is usually a straightforward process. Some banks give you the option of opening an account online, while others require you to visit a branch.

Different bank accounts offer different features, so it’s best to compare your options to find one that suits you.

All banks require you to pass an identity check to open a bank account. Australia uses the 100-point identification system, which means you’ll need to show a number of forms of ID that, together, add up to 100 points.

Common ID types include a driver’s licence, passport, Australian visa in a foreign passport, and Australian Medicare card. You’ll find out what types of ID are accepted when you go through the sign-up process online or at a branch.

Once your account is open, you’ll be given or sent a debit card that you can use to make purchases and withdraw money from your account.

Can I close my bank account over the phone?

In most cases, you can close a personal or business bank account over the phone. In fact, this is the best way to ensure you’ve closed an account properly.

By speaking to a banking representative, you can capture and close out any pending transactions, or interest owing/payable on the account being closed.

In the instance where the account is a joint account, or you have multiple bank accounts you want to close, your bank may send you a form that you need to fill out and return.

Either way, you would be advised over the phone of the steps you need to take. Calling your bank ahead of closing an account is often a smart course of action.

How to transfer money to another bank account

Transferring money to another bank is often called a bank transfer, and it can be done a few different ways.

Customers generally need three pieces of information to transfer money to another bank account. Customers need the account name, BSB and account number of the account they wish to transfer money to.

One way of transferring money to another bank account is in a branch with the help of a staff member; they will often give you a receipt as well as confirmation of the transfer.

Transfers can be also made via internet banking and phone banking.

Some banks also allow customers to make transfers via partnered ATMs, especially if the account is with the same bank.

How do you open a bank account under 18?

If you’re under 18 and you want to open an Australian bank account, you will need your passport or birth certificate. (Some lenders might require just a Medicare card or driver’s licence.) You can apply online or at a branch. If you’re 13 or under, you will probably need a parent to accompany you to a branch.

What do you need to open bank accounts?

Opening a bank account is one of the simplest online tasks you could perform. The hard part is deciding which type of bank account you want to open.

All banking institutions have a website where you hit ‘apply’ on the account of your choice and step through an application in less than 10 minutes.

Here’s a list of information that is generally required for applications.

  • Identification (driver’s licence, passport, proof of age card, proof of citizenship and/or birth certificate)
  • Tax file number (so you don’t get charged the highest tax rate)
  • Address, contact email and phone number

If you decide to open a new account at the branch, make sure you ask beforehand what information you need to take with you, or take all of the above to be safe.

What do I need to open a company bank account?

To open a company bank account, you will probably have to provide 100 points of ID, an ABN and an ACN. You will probably have to provide the details of all signatories as well.

How can I check my bank account balance online?

Checking your bank account balance online is a simple process. Once you’ve logged in to your online banking, clock on the relevant account and the balance should be visible.