Customers Dissatisfied With Banks Says Survey

Customers Dissatisfied With Banks Says Survey

Survey results released today showing high levels of customer dissatisfaction with the Australian owned banks are a wake up call to the industry and highlights the need for the government to step in to make banking in New Zealand fairer says the finance sector union Finsec.

Trans-Tasman public polling conducted by Finsec and the Finance Sector Union in Australia show a public backlash against the banks and high levels of support for a charter of Better Banking being proposed by the two unions.

“It is time for the banking industry to change. More customers are dissatisfied than satisfied with their banks. Customers say they want better staffing levels and an end to the target based pay systems that reward bank staff for selling debt products,” said Finsec Campaigns Director Andrew Campbell.

“It is time for the banks to listen. They are huge players in our economy so it is appropriate they operate in the best interests of our country. Customers are saying the banks need to change and the government needs to step in too,” said Campbell.

“The current approach that sees branches understaffed, workers pushed to sell debt, jobs sent overseas to be done cheaper while interest rates go up, bank CEOs get huge pay packages and massive profits that go offshore is unsustainable and must change,” said Campbell.

“The New Zealand public are fed up with the banks’ behaviour and want the Government to do something it. This survey show strong support for better interest rate controls, a prohibition on off-shoring jobs and better controls over staff pay systems,” said Campbell.

Key survey results

86% want banks to stop off-shoring New Zealand jobs

42% thought their bank was getting worse at showing a commitment to employing New Zealanders

78% think there should be changes to how bank staff are paid and that sales targets should be de-linked from remuneration

92% said staff should be paid for providing professional customer service, not just selling products and 85% said they would be less likely to see their financial advice as impartial if it is not

89% of customers agreed that banks should balance their corporate interests with New Zealand’s interests

81% of customers support new global rules to prevent high risk banking activities

52% said they always have to wait in a queue or on hold for service

37% agreed with the statement: ‘Customer service has gotten worse. The banks have closed branches, and have not hired enough people to help on the phone or online so I just end up waiting longer.’

For a summary of the results on the Trans-Tasman better banking campaign go to http://better-banking.org/survey-results-new-zealand/

For the full report contact Andrew Campbell on the numbers below for an electronic version to be sent through.

ENDS

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