Should you buy the most liked ASX bank stocks?

Suncorp Group Ltd (ASX:SUN), Macquarie Group Ltd (ASX:MQG), Bendigo and Adelaide Bank Ltd (ASX:BEN) and Bank of Queensland Limited (ASX:BOQ) could all be better investment options than the 'Big Four'.

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Bank bashing could almost be described as an Aussie hobby, yet the latest research from Roy Morgan would certainly suggest otherwise.

According to a survey by Roy Morgan, bank customer satisfaction has reached a record 18-year high of 82.3%.

Interestingly, the most liked banks remain the smaller, 'second tier' institutions. When it comes to the 'Big Four' the order of satisfaction was Commonwealth Bank of Australia (ASX: CBA) leading with 81%, followed by Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd. (ASX: NAB) both with 80.7%. In last place was Australia and New Zealand Banking Group (ASX: ANZ), with a 79.7% customer satisfaction rating.

Investors, like customers, could be better off focusing on the second tier banks.

Considering their sky high profits, the fact the four banking majors can only achieve a satisfaction rating of around 80% appears pretty dismal. It could also be another reason why investors would be better served focusing on the smaller, second tier banks.

None of the Big Four banks made the Top Ten based on consumer banking satisfaction, however a number of smaller banks did.

Leading the pack amongst listed peers was Suncorp Group Ltd (ASX: SUN), followed by Macquarie Group Ltd (ASX: MQG), then Bendigo and Adelaide Bank Ltd (ASX: BEN) and Bank of Queensland Limited (ASX: BOQ). All of these firms managed a satisfaction level between 85% and 89%.

The fact customers prefer using the second tier banks just adds to the arguments for considering second tier bank stocks ahead of the majors. With speculation that regulators are set to impose further limits on capital requirements, lending standards, and the ongoing potential for disruptive technologies to dislodge the traditional banking business model, arguably the smaller banks are less exposed to the full brunt of these threats.

Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.

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