TSB Bank was one of two top performing banks, a Consumer NZ survey shows. Photo: RNZ / Cole Eastham-Farrelly
New Zealand's banking minnows have trounced Australian-owned giants in the latest customer satisfaction survey.
The annual Consumer NZ banking survey has The Co-operative Bank and TSB as the top two performing banks, earning People's Choice Awards.
The survey of 13 institutions was based on performance ratings for categories including value for money, call centre service, and how dealing with problems and complaints.
"Overall customer satisfaction levels at The Co-operative Bank and TSB are impressive compared to the behemoths like ASB and Westpac," Consumer NZ investigative team leader Rebecca Styles said.
"Yet again, the banks with the largest market share and biggest profits are failing to keep their customers as satisfied as the smaller banks."
The four large Australian-owned banks, which have more than 80 percent of the local banking market, trailed the leaders by a solid margin, with Westpac judged the the worst performer for the second year in a row.
"Westpac has a sizeable share of the market at 19 per cent, but its branch and call centre service, timeliness to respond to enquiries, and fairness when dealing with consumer issues is leaving many customers wanting," Styles said.
Co-operative Bank chief executive Mark Wilkshire said the survey showed that being small was no impediment to offering either good service or full banking services.
"We put people before profit. With everything we do, our customers are at the centre, and I'm proud to see through this survey that our customers feel the same."
The bank is owned by its depositors and a portion of profits is returned each year.
Wilkshire said he expected it would be more important than ever to be close to customers as economic conditions tighten.
Consumer NZ also surveyed on Kiwisaver providers, with Simplicity, Milford Funds and Generate Investment Management rated the best, while the biggest two bank providers - ANZ and ASB - ranking 10 and 11 respectively in a field of 13.