New Zealand Retail Banking Competitor Benchmarking - Analyzing Top Players Market Performance and Share, Retention Risk, Financial Performance, Customer Relationships, Customer Satisfaction and Actionable Steps
Summary
This report - which is part of a series of New Zealand content including country analysis and consumer profiles - analyzes financial performance, depth of customer relationships, and customer satisfaction. It ranks New Zealand’s top banks across a range of criteria, from digital experience to product clarity and money management tools.
Across the New Zealand market, all providers in the review period increased their total divisional assets (TDA), with ASB seeing the largest increase. Most banks under review stayed under the average market cost/income ratio, although there were notable increases for TSB and the Co-operative Bank. In terms of market power, ANZ and BNZ still hold a combined current account share of almost 50%. Within this market, ANZ retains its control of retail deposits and residential mortgages, while BNZ has enjoyed considerable gains in the personal loans space over the last decade.
Scope
- ANZ, the top New Zealand bank, holds almost a third of the current account market.
- Loyalty reward programs and help with digital banking are the most important attributes determining Net Promoter Scores (NPS), despite low customer net satisfaction in both these areas.
- New Zealand banks have fared well coming out of the COVID-19 pandemic, with all of them increasing their TDA levels and all but two banks reducing their cost/income ratios in 2021.
- Identify the factors affecting growth prospects across the deposit, credit card, personal loan, and mortgage markets.
- Track competitor gains and losses in market share.
- Assess the financial performances of competitors.
- Receive detailed analysis of the drivers of customer advocacy.
- Executive summary
- Financial Performance
- A handful of major banks in the market have a cost/income ratio above the market average of 61%
- Except for ANZ and Westpac, all providers have had an increase in their retail deposit market shares
- The top four providers account for 77% of the market share in New Zealand, while the Co-operative Bank and TSB make up 6%
- ANZ and BNZ control the mass affluent customer base in the market, but the latter bank has lower shares elsewhere
- Customer Relationships
- Current account holders at the Co-operative Bank and TSB Bank are more likely to promote their current account
- Westpac customers have a long tenure, but the bank has the lowest NPS, showing significant dissatisfaction from long-standing customers
- Almost 70% of Co-operative customers are likely to use the bank to achieve their top goals, while customers of Westpac and TSB are the least likely
- BNZ has had the most success in cross-selling additional products to its customers
- Customer Satisfaction
- There is a significant difference between the net satisfaction of promoters and detractors with loyalty rewards
- TSB and Kiwibank have the highest digital experience satisfaction scores in the market
- TSB and Kiwibank are the most successful in customer satisfaction across the market
- Actionable Steps
- Appendix
- Methodology
- Sample sizes
- Further reading
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