Rate cuts make no difference to business bank satisfaction

Businesses are no more satisfied with the major banks now than they were in October, despite two interest rate cuts in November and December.

Lorna Brett
Lorna Brett
Locked · 24 Jan 2012 · 2 min read
Above Rate cuts make no difference to business bank satisfaction. Dynamic Business

Businesses are no more satisfied with the major banks now than they were in October, despite two interest rate cuts in November and December.

According to DBM Consultants’ Business Financial Services Monitor, business customer satisfaction in the four major banks hasn’t changed since October last year.

This is thanks largely to the worsening economic climate and the fact that just one in six businesses have loans of any significance, which means lower rates directly impact a fraction of all businesses.

DBM managing director Dhruba Gupta said during a worsening economic climate, satisfaction about rate cuts is overshadowed by economic concerns.

“Overall satisfaction with banks reflects respondents’ feelings about their bank and their business, and that feeling is heavily influenced by the state of the economy. In tough times, businesses are under pressure and banks, which play such an integral role in the day-to-day and longer term operation of businesses, become part of the overall equation.”

Gupta said sliding satisfaction would likely continue into 2012, as concern about the collapse of the Eurozone grows.

“In 2012, we expect economic factors will continue to play a significant role in affecting satisfaction. The major banks will be working hard to improve their scores, but can expect to face strong headwinds again this year.”

Small businesses reported being most satisfied with Westpac and the Commonwealth Bank, which they gave an average rating of 7.1 out of 10, followed by the ANZ and NAB, which were rated 7 out of 10.

Overall, micro, small, medium and large businesses are most satisfied with Westpac, which rated 7.5 out of 10, followed by the Commonwealth Bank at 7.3, ANZ with 7.0 and NAB with 6.9 out of 10.

LB
Lorna Brett
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