BRANCH BANKS – AUSTRALIA

Banks shut ATMs and branches amid digital push and cost cuts

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Original article by James Frost
The Australian Financial Review – Page: 18 : 9-Nov-20

Data presented to a federal parliamentary inquiry has highlighted the decline in the branch and ATM networks of Australia’s major banks over the last five years. The figures show that the number of branches and ATMs per 100,000 people has fallen by 33 per cent since 2015. Shadow assistant treasurer Andrew Leigh says the federal government has ignored the issue of branch closures, and says it has no plans to ensure that disadvantaged Australians continue to have access to banking services. The Australian Banking Association notes that the shift to digital banking has gathered pace during the coronavirus pandemic.

CORPORATES
AUSTRALIAN BANKING ASSOCIATION

Big banks chop 200 branches in cost-cutting drive

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Original article by Cliona O’Dowd
The Australian – Page: 21 : 24-Oct-19

Data from the Australian Prudential Regulation Authority shows that the nation’s four major banks closed 207 branches during 2018-19, and 750 since 2014. Westpac has closed 333 branches in the last five years, including those of its subsidiaries, ahead of ANZ Bank with 190. A Westpac spokesman has defended the closures, noting that less than two per cent of banking transactions are now undertaken in its branches. More than 1,000 ATMs nationwide have also been scrapped in the last year.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, ST GEORGE BANK LIMITED, BANK OF MELBOURNE LIMITED, BANK OF SOUTH AUSTRALIA LIMITED, FINANCE SECTOR UNION

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

Mortgage customer satisfaction highest when obtained directly from bank branch

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Original article by Roy Morgan
Market Research Update – Page: Online : 7-Dec-18

New research from Roy Morgan shows that Australian home loan customers who obtained their loan in person at a bank branch had a satisfaction rating of 78.7% in the six months to October 2018, compared to 74.2% for customers who used a mortgage broker. Other channels also had lower satisfaction, including mobile bankers (75.3%) and telephone (77.7%). It is important to note that even among more recent home loans (held for under six years), satisfaction with going into a branch to obtain the loan was 80.9% compared to 76.1% for mortgage brokers. The satisfaction of mortgage broker customers of the big four banks is well below the rating given by those that have obtained their loan in person at a branch. The biggest gap in satisfaction is among ANZ mortgage customers, where those using a broker have only 63.4% satisfaction, compared to 76.2% for those who used a branch directly. Of the major home loan banks, Bendigo Bank is clearly the satisfaction leader when dealing in person at a branch with 91.2%. Satisfaction with home loan customers using mortgage brokers is highest for St George (86.9%). Roy Morgan’s 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, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BENDIGO BANK, ST GEORGE BANK LIMITED

Banks urged to slash branches to offset rising costs

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Original article by Richard Gluyas
The Australian – Page: 19 : 8-Oct-18

Morgan Stanley argues that Australia’s major banks could generate significant savings by closing bank branches and placing greater emphasis on mobile banking. This is one of four scenarios outlined in a new report; however, Morgan Stanley notes that banks are unlikely to significantly reduce the cost of their networks in the next year, given that the sector is under scrutiny at present. Morgan Stanley adds that the major banks could potentially generate large savings by reviewing their multibrand strategies.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Bankwest branch closures hit 200 workers as customers shift online

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Original article by Alice Uribe, David Marin-Guzman
The Australian Financial Review – Page: 19 : 19-Jul-18

Bankwest MD Rowan Munchenberg says consumers’ growing preference for mobile banking has prompted the Commonwealth Bank subsidiary to close 29 bank branches in New South Wales, Victoria and Queensland. The move will result in the loss of 200 jobs, and the Finance Sector Union’s national secretary Julia Angrisano says Bankwest should have engaged in more consultation with staff. She has identified digital disruption as the biggest issue facing the financial services industry.

CORPORATES
BANKWEST, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, FINANCE SECTOR UNION, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Mortgage customer satisfaction higher when deal directly with bank

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Original article by Roy Morgan
Market Research Update – Page: Online : 19-Mar-18

A Roy Morgan Single Source survey, which was carried out in the six months to January 2018, has found that home loan customers’ satisfaction with banks when using a mortgage broker was only 77.3%. This compares to 80.3% when home loans were obtained in person at a branch. Even among more recent home loans (held for under six years) satisfaction with going directly into a branch was 81.7%, compared to 78.7% for mortgage brokers. Home loan customers of Bendigo Bank who obtained their loan in person at a branch had the highest satisfaction with 92.6%, followed by Bankwest (87.3%) and St George (86.8%). The best of the big four was NAB with 82.4%, followed by ANZ (79.7%). All of the largest banks, with the exception of Westpac, had higher satisfaction when going direct rather than using mortgage brokers. Meanwhile, satisfaction when using mortgage brokers was highest for St George with 85.6%, Bankwest (82.1%) and Suncorp Bank (82.0%). Each of the big four were below the market average (77.3%) for home loan customer satisfaction when using a mortgage broker, with the best of them being NAB (76.4%) and Westpac (75.7%).

CORPORATES
ROY MORGAN LIMITED, BENDIGO BANK, BANK OF WESTERN AUSTRALIA LIMITED, ST GEORGE BANK LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, SUNCORP BANK

Bank advocacy highest among App users

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Original article by Roy Morgan
Market Research Update – Page: Online : 1-Mar-18

A Roy Morgan Single Source survey has found that bank customers using an App on a mobile phone or tablet to deal with their bank are more likely to recommend them to a friend or colleague compared to those accessing their bank using other channels. In the 12 months to January 2018, 68.7% of customers who dealt with their bank using an App on a mobile phone or tablet said they were highly likely to recommend their bank to others. This is based on them scoring an 8, 9 or 10 on a possible 10-point likelihood scale. This level of advocacy is well above that of the more traditional method of dealing with banks – the branches – with 64.7% being high advocates. Internet banking using a website is currently the most common method for dealing with banks, but it is losing some ground to the use of Apps on mobile phones or tablets.

CORPORATES
ROY MORGAN LIMITED

Nearly three and a half million increase in mobile bank users since 2013

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 23-Aug-17

A Roy Morgan Single Source survey has found that 8.3 million Australians aged 14+ used mobile banking in an average four-week period in the six months to June 2017, compared with 4.83 million in the six months to June 2013. The survey also shows that the proportion of Australians who use mobile banking in an average four weeks has risen from 25.3% to 41.5% over this period, while the proportion who use a bank branch has fallen from 35.8% to 26.5%. Meanwhile, 62.8% of millennials now use mobile banking, compared to only 21.5% using branches. They now number 3.17 million users or 38.2% of the total market. This is well above generation X with 2.03 million or 24.5% of total mobile banking users.

CORPORATES
ROY MORGAN RESEARCH LIMITED

Bank branches under threat

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Original article by Sally Rose
The Australian Financial Review – Page: 16 : 14-Dec-15

Gerard du Toit of Bain & Company says Australian banks may close 10-30 per cent of their bank branches within five years, as the trend toward mobile banking gathers pace. He notes that the number of visits to branches fell by nearly 10 per cent year-on-year in the September 2015 quarter. However, du Toit cautions banks against shifting their focus to digital banking before it is fully accepted by customers, particularly those in older age demographics.

CORPORATES
BAIN AND COMPANY, ABN AMRO BANK NV, FACEBOOK INCORPORATED