Bank demand hits the wall
(17 June 2009 – Australia) Demand for new banking products has hit the wall, with current market conditions and falling satisfaction effecting potential future cross sell, according to the latest East & Partners’ Business Banking Sentiment Index (BBSI).
East & Partners’ tracking of future demand for business banking service has seen a consistent upward trend in recent years, indicating healthy growth in business banking, despite poor sentiment for some banks.
The last few months, however, has seen demand for more business banking services level out.
At the same time, bank sentiment has hit all time lows and businesses are finding it tough to get the extra credit they need, at a reasonable price, in order to grow their business.
The Sentiment Score is an aggregated rating metric comprising four different measures of customer sentiment – Empathy, Satisfaction, Loyalty and Advocacy.
The overall sentiment score for May 2009 was 37.6 (out of 100), a decrease from last month’s score of 38.4 and the lowest score since the BBSI started in mid 2006.
Of the Big Four, no bank saw an increase in sentiment this month, with ANZ taking the biggest hits. NAB maintains the top Big Four sentiment rating, with a score of 53.9 this month.
Of all the banks, just two banks managed to increase their sentiment this month, Suncorp and St George.
The best bank in sentiment is Bank of Queensland, despite the fall this month. Customers of St George are the most satisfied of any bank in May 2009, with a total score of 74.4.
Each month, East & Partners’ research team conducts telephone interviews with a sample of 750 businesses nationally, providing an in depth study of businesses in the A$1 to 5 million, $5 to 20 million and $20 to 100 million turnover segments across Australia.
The last few months, however, has seen demand for more business banking services level out.
At the same time, bank sentiment has hit all time lows and businesses are finding it tough to get the extra credit they need, at a reasonable price, in order to grow their business.
The Sentiment Score is an aggregated rating metric comprising four different measures of customer sentiment – Empathy, Satisfaction, Loyalty and Advocacy.
The overall sentiment score for May 2009 was 37.6 (out of 100), a decrease from last month’s score of 38.4 and the lowest score since the BBSI started in mid 2006.
Of the Big Four, no bank saw an increase in sentiment this month, with ANZ taking the biggest hits. NAB maintains the top Big Four sentiment rating, with a score of 53.9 this month.
Of all the banks, just two banks managed to increase their sentiment this month, Suncorp and St George.
The best bank in sentiment is Bank of Queensland, despite the fall this month. Customers of St George are the most satisfied of any bank in May 2009, with a total score of 74.4.
Each month, East & Partners’ research team conducts telephone interviews with a sample of 750 businesses nationally, providing an in depth study of businesses in the A$1 to 5 million, $5 to 20 million and $20 to 100 million turnover segments across Australia.
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