More companies look to change banks
The latest East & Partners survey shows that more mid-sized companies are unhappy with their banks and are looking to change. The survey, which is carried out every six months among firms turning over between $20 million and $100 million annually, indicates that Westpac and the National Australia Bank are losing market share while the ANZ and the Commonwealth Bank are gaining. The ANZ now holds 19.6 and the CBA 22.3 per cent, with both gaining 0.5 per cent. The NAB fell to 23.9 per cent from 24.9 per cent and Westpac dropped to 17.6 per cent from 18.3 per cent. St George Bank, in fifth place, has increased its mid-size business market share from 4.5 per cent to 4.9 per cent.
Together the Big Four hold 83.4 per cent of the market, a drop from 84.1 per cent six months ago.
19.1 per cent of all mid-scale company customers were actively considering changing banks in the next six months, a jump from just 14.5 per cent six months ago, with NAB (26.9 per cent) and Westpac (25.2 per cent) most likely to lose customers. The ANZ at 7 per cent and CBA at 5.5 per cent were less likely to lose customers. If the customers do go ahead and change banks, this will represent an annual churn rate of almost four in ten.
Paul Dowling, principal analyst at East & Partners, says that the banks' mid-size business customers' expectations are rising but their satisfaction levels are only just above average, and this “should be ringing some serious alarm bells”.