Australia Retail Banking Competitor Benchmarking - Financial Performance, Customer Relationships and Satisfaction

Abstract

This report looks at market performance, retention risk, and market shares across key products within Australia's banking space. It also ranks the country's leading banks across a range of criteria, from digital adoption and user experience to rewards and money management tools.

Despite rising interest rates in Australia through 2022, all of the banks analyzed in this report increased their assets (although interest margins declined for most). In terms of market power the big four still dominate, collectively controlling over 60% of the current account market. Within this group, CommBank has consolidated its power over the past 10 years, increasing its own market share at the expense of the remaining big four providers.

Scope

• Loyalty reward programs are the most important attribute determining net promotor score. Despite this, banks performed by far the worst on this metric.
• The big four are the best at cross-selling products to their main current account holders, though Westpac and ANZ both have negative NPS.
• The likelihood of switching providers is very low among Australian customers, with the exception of ANZ, which is at risk of potentially losing almost a third of its customers.

Reasons to Buy

• Develop an understanding of the composition of the Australian retail banking market.
• Learn which banks are succeeding and which are underperforming across various metrics, ranging from profitability to net promoter score.
• Identify the actionable steps that need to be taken by Australian banks to address their biggest shortcomings.