Roy Morgan’s Single Source survey revealed that small business owners achieve higher net promoter scores (NPS) when their bank manages both their business and consumer banking needs.
This indicates that a more comprehensive banking relationship contributes to better customer satisfaction.
“Roy Morgan Small Business Research shows that NPS is higher among small business owners who have both a business banking and consumer banking relationship with their bank compared to those who only have a business banking relationship,” said Michele Levine (pictured above), CEO of Roy Morgan.
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The overall banking industry NPS has fallen below zero, with more detractors than promoters.
While NPS saw an improvement in 2020 due to loan deferrals during the COVID-19 pandemic, it has been in negative territory since early 2022 amid the cost-of-living crisis.
The industry NPS dropped from 0.9 in June 2022 to -3.8 in June 2024.
“Consumer banking NPS was -3.8 in the six months to June 2024, down from 0.9 two years ago just after the current cycle of rising interest rates commenced,” Levine said. “NPS drifted downwards after inflation and interest rates rose.”
Despite the overall negative trend, ING and Bendigo Bank have managed to maintain positive NPS.
In June, ING reported an NPS of 25.3, while Bendigo Bank followed with an NPS of 19.7.
Other large banks, however, reported negative NPS, with Suncorp Bank at -1.8 and the Commonwealth Bank (CBA) leading the big four with -7. The average NPS for the big four banks was -12.7.
The Roy Morgan data suggested that small business owners rate banks similarly to consumers but show a marked difference when they have both business and consumer banking relationships.
For instance, Bendigo Bank’s NPS among customers with both relationships is 25, compared to just nine for those with only a business banking relationship.
“This suggests that the deeper banking relationship created by caring for both the customers’ business and consumer banking needs contributes to better outcomes for the customer and enhances the prospect of positive NPS,” Levine said.
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