New information from Roy Morgan Small Business Research indicates that higher NPS is achieved for small business owners when their bank looks after their total business and consumer banking needs
New financial data from Roy Morgan’s Single Source focused on small business suggests that NPS is higher among small business owners[2] who have both a business banking and consumer banking relationship with their bank than those who only have a business banking relationship.
This suggests that the deeper banking relationship created by caring for both the small business owners’ business and consumer banking needs contributes to better outcomes for the customer and enhances the prospect of a positive Net Promoter Score (NPS).
Consumers deliver declining Net Promoter Score (NPS) to the Banking Industry
Taken as a whole, banking industry NPS is now below zero – there are more ‘detractors’ than ‘promoters’.
While NPS improved in 2020 as banks provided deferrals on loan payments to households and businesses affected by COVID, NPS has declined since early 2022 coinciding with the cost-of-living crisis, and for close to two years has been in “negative territory”. NPS across the banking industry overall declined from 0.9 in June 2022 to -3.8 in June 2024, a 4.7-points fall.
Chart 1: Roy Morgan Single Source NPS Trend
Source: Roy Morgan Single Source Australia, six month moving averages to June 2024. Base: n=29,587 Australians aged 14+.
ING and Bendigo Bank buck the NPS trend among larger banks
While NPS is in “negative territory” across the banking industry overall, among larger banks reported there are institutions which show positive NPS. For example, ING had NPS of 25.3 in June 2024 closely followed by Bendigo Bank at 19.7; both having more ‘promoters’ than ‘detractors’.
Nevertheless, the remaining larger banks have negative NPS, with Suncorp Bank ranking third on -1.8, followed by CBA with the highest NPS among the big four banks, with a rating of -7.0. Average NPS of the big four banks as a group was -12.7 in June 2024.
Chart 2: Consumer NPS among larger banks: June 2024*
Source: Roy Morgan Single Source Australia, six month moving average to June 2024.
Base: n = 29,857 Australians aged 14+. *The nine banks reported have a minimum sample size of at least 260 for the period reported.
Small business owners are similar to consumers – with one big difference
Overall small businesses rank the banks very much the same as consumers. However, a deeper analysis of the Roy Morgan data, that includes consumers and small businesses, reveals NPS is higher among small business owners who have both a business banking and consumer banking relationship with the same bank, than those who only have 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 the customer recommending their bank.
For instance, for Bendigo customers who have both a business and consumer banking relationship with Bendigo NPS is 25.0 while among those who only have a business banking relationship NPS is only 9.0.
Chart 3: Small business owners NPS ratings of banks:
Business & consumer banking customers cf. business only banking customers*
Source: Roy Morgan Single Source Australia, 12 month moving average to June 2024. Base: n = 8,714.Australians aged 14+ who are small business owners/ decision makers. *The nine banks reported have a minimum sample size of at least 200 for business banking customers.
Roy Morgan CEO Michele Levine commented:
“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.
“In hindsight, it is not surprising that NPS for the banks was strong prior to the cost-of-living crisis given that from March 2020 around 450,000[3] mortgagors were given ‘mortgage holidays’ and Australia’s banks started using their balance sheets to provide deferrals to household and small business lenders impacted by COVID. Notwithstanding these consumer-friendly actions initiated by the banks, NPS drifted downwards after inflation and interest rates rose. This suggests NPS is swayed by the macro environment.
“Nevertheless, banks can still achieve positive NPS despite an unfavorable macro environment. For example, 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. 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.”
These latest banking NPS ratings come from the Roy Morgan Single Source survey, derived from in-depth interviews with over 60,000 Australians each year of whom over 16,000 are small business owners and decision makers.
Related research findings
For further in-depth analysis, view the various Banking and Finance Currency Reports.
For comments or more information about Roy Morgan Small Business Research data please contact:
Roy Morgan Enquiries
Office: +61 (3) 9224 5309
askroymorgan@roymorgan.com
[1] Net Promoter Score (NPS) is calculated by subtracting the percentage of customers who are unlikely to recommend a bank (‘detractors’) from the percentage who are likely to recommend a bank (‘promoters’).
[2] Small businesses owners are defined as decision makers of businesses with annual revenue of less than $5 million.
[3] Australian Banking Association: https://www.ausbanking.org.au/one-year-on-banks-ready-to-support-customers-as-more-resume-repayments
Margin of Error
The margin of error to be allowed for in any estimate depends mainly on the number of interviews on which it is based. Margin of error gives indications of the likely range within which estimates would be 95% likely to fall, expressed as the number of percentage points above or below the actual estimate. Allowance for design effects (such as stratification and weighting) should be made as appropriate.
| Sample Size | Percentage Estimate |
| 40% – 60% | 25% or 75% | 10% or 90% | 5% or 95% | |
| 1,000 | ±3.0 | ±2.7 | ±1.9 | ±1.3 |
| 5,000 | ±1.4 | ±1.2 | ±0.8 | ±0.6 |
| 7,500 | ±1.1 | ±1.0 | ±0.7 | ±0.5 |
| 10,000 | ±1.0 | ±0.9 | ±0.6 | ±0.4 |
| 20,000 | ±0.7 | ±0.6 | ±0.4 | ±0.3 |
| 50,000 | ±0.4 | ±0.4 | ±0.3 | ±0.2 |
