Smaller banks ahead of big four in customer satisfaction

A survey has shown customers are more satisfied by the smaller banks.

Based on the results of an online survey undertaken by comparison website, it seems that the smaller banks are outperforming their bigger rivals in satisfying customers.

The survey, which was based on the views of 28,000 customers, found ING Direct to be Australia’s best bank, ahead of ME Bank, which was voted as the best home lender and provider of credit and debit cards.

However, although they were beaten by their smaller competitors, the big four banks — ANZ (ASX: ANZ), NAB (ASX: NAB), Westpac (ASX: WBC) and Commonwealth Bank (ASX: CBA) — still achieved an all-time high satisfaction rating of 7.55 out of 10, with NAB taking the title of the ‘Best Big 4 Bank’ scoring 7.76 points. NAB also won for best term deposits, ahead of each of its major competitors as well as St George, which is owned by Westpac.

Foolish takeaway

Whilst each of the banks are eager to increase their market share and take advantage of the low interest rate environment to attract new customers, improving customer service levels and convenience are key areas that can aid them towards this goal.

The banks have pushed up in value substantially and, despite  their offering of high dividend yields, look unlikely to outperform the market in the long-term. Instead, you may be interested in our #1 dividend-paying stock. Discover The Motley Fool’s favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of “The Motley Fool’s Top Dividend Stock for 2013-2014.”

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Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned.

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