Public confidence in banks is lower than in supermarkets as profits soar amid the cost of living crisis.
Large Australian Banks ANZ, BNZ, ASB, Westpac Reported record profits earlier this yearDespite economic pressure.
The latest sentiment survey released quarterly by New Zealand Consumer Group found that 39% of New Zealanders don’t trust their banks.
Consumer NZ CEO John Duffy said people were frustrated by high rates and poor customer service.
“Consumers don’t value what they’re paying when they do business with banks,” Duffy said.
“This is the lowest level for banks and the biggest drop since we’ve been doing this survey for over two years. It’s reaching the next level. [banks] Less trusted than the supermarket, the supermarket says something. ”
The worst results were concentrated in the big Australian banks.
“Small banks actually do much better than big banks,” Duffy said.
“New Zealand’s four largest and most profitable companies have the lowest levels of customer satisfaction, while smaller New Zealand-owned companies far outperform.”
High fees were one of his biggest complaints, but Duffy said it wasn’t all the bank’s fault.
“The Reserve Bank is raising interest rates, so if you’re taking out a mortgage, you’re paying far more money.
“It’s not necessarily all banks’ fault, but they’re also paying fees, and they’re also expecting that they’re not returning the level of service that this level of trust suggests. I don’t feel it’s worth it.” ”
These fees, in contrast to the bank’s own huge profits, caused customer dissatisfaction.
“The profitability is going to make people question the level of service they are getting,” Duffy said. “The sector is lucrative, but facing a cost of living crisis that’s going to be really frustrating for some people.”
Chancellor of the Exchequer Grant Robertson said he still had faith in banks but understood public sentiment was changing.
“There needs to be a discussion about profits and there needs to be a discussion about how individual consumers use banks,” Robertson said after a pre-budget speech at BNZ headquarters.
“We need banks. Banks are a part of the system in which we operate. We have to justify the level of profit we are getting.”
“I didn’t read [Consumer NZ] It’s a report, so I don’t know how much the benefits are reflected in people’s views of trust, but these issues definitely have to be justified. ”
Duffy said an investigation might be needed.
“I think we need to make an independent assessment of the level of competition in the banking sector and consider whether there are interventions that can be taken to promote competition. I wish I could.”
https://www.rnz.co.nz/news/business/489811/banks-less-trusted-than-supermarkets-consumer-nz-survey Banks are less trusted than supermarkets – New Zealand consumer survey