K62 Finance

Mortgage customers more satisfied dealing with banks than mortgage brokers

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Original article by Roy Morgan
Market Research Update – Page: Online : 4-Mar-19

A Roy Morgan Single Source survey for the six months to January 2019 shows that home loan customers who obtained their loan in person at a bank branch had a satisfaction rating of 77.2%, compared to 75.1% for those who used a mortgage broker. Dealing in person with a mobile bank representative had the highest level of satisfaction, at 80.6%. It is important to note that even among more recent home loans (held for under six years), satisfaction with going to a branch to obtain the loan was 79.8%, compared to 77.7% for mortgage brokers. Among the largest home loan banks, St George has the highest satisfaction with loans obtained through mortgage brokers (83.9%), closely followed by Bankwest (81.0%). Satisfaction among those obtaining their home loan through a branch was the highest for Bendigo Bank with 89.6%, well ahead of St George on 79.6%. The Single Source survey is based on in-depth interviews conducted face-to-face with over 50,000 consumers per annum in their homes, including over 12,000 mortgage holders.

CORPORATES
ROY MORGAN LIMITED, ST GEORGE BANK LIMITED, BANKWEST, BENDIGO BANK

Mobile banking highest customer satisfaction

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Original article by Roy Morgan
Market Research Update – Page: Online : 4-Mar-19

Mobile banking is the most rapidly growing banking channel, and this is supported by the fact that it has the highest customer satisfaction. In January 2019, satisfaction with mobile banking users was 89.3% and higher than internet banking (87.7%), branches (85.2%), personal banker/advisor (81.2%) and phone banking (77.2%). Mobile banking is now used by 44.7% of Australians in an average four-week period, compared to only 22.9% who use branches. All four of the major banks’ customers have higher satisfaction with their mobile banking compared to those using branches. Internet banking users also have higher satisfaction than those using branches, but on average remain a little below that of mobile bankers. These are some of the latest findings from Roy Morgan’s ‘Service Satisfaction Report-Consumer Banking Market January 2019’. This report is based on data collected from Roy Morgan’s Single Source survey, which involves in-depth interviews conducted face-to-face with over 50,000 consumers per annum in their homes.

CORPORATES
ROY MORGAN LIMITED

RBNZ could end big four’s NZ super profits

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Original article by Sarah Turner
The Australian Financial Review – Page: 21 : 1-Mar-19

New Zealand has traditionally been a cash cow for Australia’s major banks, but experts warn that profit growth could be dampened by the Reserve Bank of New Zealand’s proposal to increase their capital requirements. Westpac has warned that any move to impose higher capital buffers could push up interest rates on loans and result in a downturn in deposit rates. The RBNZ has downplayed concerns that it proposal may prompt Australian banks to exit the NZ market.

CORPORATES
RESERVE BANK OF NEW ZEALAND, WESTPAC BANKING CORPORATION – ASX WBC, NEW ZEALAND INITIATIVE, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, JP MORGAN AUSTRALIA LIMITED

Big four may mull NZ exit due to capital call

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Original article by Sarah Turner
The Australian Financial Review – Page: 19 : 28-Feb-19

Brian Johnson of CLSA and Jonathan Mott of UBS have warned that Australia’s four major banks could seek to divest their New Zealand subsidiaries if the nation’s central bank presses ahead with plans to increase their capital requirements. However, the Reserve Bank of New Zealand has downplayed such suggestions, arguing that the nation’s banks are among the most profitable in the world. Mott does not expect the RBNZ to back down on its proposal.

CORPORATES
RESERVE BANK OF NEW ZEALAND, CLSA AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD

‘Flawed but not illegal’: NAB digs in over fees for no service

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Original article by James Frost
The Australian Financial Review – Page: 15 & 20 : 26-Feb-19

The Australian Securities & Investments Commission’s case against National Australia Bank over claims that it charged customers for services that were not provided is due to go to court in May. NAB has conceded that it did the wrong thing in regard to customers who were not linked to a financial adviser, but the bank has rejected claims that it was in the wrong in instances where the customer was linked to a financial planner. It appears to be arguing that making advice available to this second group of customers justified the charging of a fee.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MLC LIMITED

RBA could jump rates gun: UBS

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Original article by Samantha Bailey
The Australian – Page: 28 : 26-Feb-19

UBS still expects the Reserve Bank of Australia to reduce the cash rate in November 2019 and February 2020. However, UBS has warned that there is potential for monetary policy to be eased sooner if domestic and global conditions justify such a move. These include a further downturn in house prices and a rise in the unemployment rate.

CORPORATES
RESERVE BANK OF AUSTRALIA, UBS HOLDINGS PTY LTD

Banks on right track with open banking, says APRA chairman Byres

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Original article by James Eyers
The Australian Financial Review – Page: 17 : 25-Feb-19

Australian Prudential Regulation Authority chairman Wayne Byres says the nation’s banks are working hard to meet the schedule for implementing the open banking regime. The first phase of open banking, part of the federal government’s consumer data right program, takes effect on 1 July. Byres told a Senate committee hearing on 21 February that the banks are concerned about greater information security risks as a result of open banking being introduced, as well as the use of derived data, which he says they regard as their intellectual property.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN LABOR PARTY, AUSTRALIAN BANKING ASSOCIATION

The 2018 8th Annual Roy Morgan Customer Satisfaction Awards: Banking and Finance Winners

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Original article by Roy Morgan
Market Research Update – Page: Online : 25-Feb-19

Australia’s most satisfying banks, insurers and superannuation funds have been announced at the 8th Annual Roy Morgan Customer Satisfaction Awards. In a very difficult year for banking with the Royal Commission, declining trust, combined with disrupters, it is a major achievement to be rated the number one bank for customer satisfaction. The winner in a very crowded field has to be a strong performer, and this honour goes to Heritage Bank. For the sixth year running, the Commonwealth Bank has claimed the annual award for Major Bank of the Year, driven in particular by strength in mobile and internet banking satisfaction. People’s Choice Credit Union is again the winner in the category of Building Societies and Credit Unions, while RACT has won the General Insurer award for the fourth year in a row, with a clean sweep of the 12 monthly titles. Meanwhile, not-for-profit health fund St Luke’s Health has again won the Private Health Insurer award, while Macquarie and Catholic Super are retail and industry super fund of the year respectively.

CORPORATES
ROY MORGAN LIMITED, HERITAGE BANK LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, PEOPLE’S CHOICE CREDIT UNION, RACT INSURANCE PTY LTD, ST LUKE’S HEALTH INSURANCE, MACQUARIE SUPERANNUATION, CATHOLIC SUPER

Westpac faces class action on loans

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Original article by Richard Gluyas
The Australian – Page: 24 : 22-Feb-19

Westpac intends to defend a class action launched by Maurice Blackburn on behalf of home loan customers. The law firm will contend that Westpac breached its responsible lending obligations by failing to sufficiently assess borrowers’ capacity to repay the loan and to verify information about their financial circumstances. Westpac had been subject to similar legal action by the Australian Securities & Investments Commission in 2018, and that case will return to court after a settlement was rejected by the presiding judge.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, MAURICE BLACKBURN PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA

Evans’ rate cut talk turns focus on RBA stance

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Original article by David Rogers
The Australian – Page: 30 : 22-Feb-19

Westpac’s chief economist Bill Evans now expects the Reserve Bank to reduce the cash rate twice in 2019, in August and November. His forecast is based on expectations that economic growth will slow to 2.2 per cent in 2019 and 2020, with the unemployment rate rising to 5.5 per cent in the second half of 2019. Evans had previously expected official interest rates to remain on hold for the next two years.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, RESERVE BANK OF AUSTRALIA, JP MORGAN AUSTRALIA LIMITED