Not happy: rate hike wrath at big four

Westpac has topped the latest customer satisfaction survey among banking's big four. Source: HWT Image Library

The big banks suffered a slide in their satisfaction ratings among business customers last month that coincided with the controversial rate rises, according to the Business Financial Services Monitor.

It was the first fall in satisfaction in the monthly survey since May.

Across all businesses the Commonwealth Bank and business banking heavyweight National Australia Bank suffered a slide in satisfaction ratings.

The CBA triggered a storm of public outrage when it lifted its standard variable mortgage rate by 45 basis points on Melbourne Cup Day - almost double the 25 basis-point increase in the cash rate.

Averaged across all businesses, satisfaction levels for Westpac and ANZ were steady, although ANZ's satisfaction rating slipped among medium and large businesses and Westpac climbed among medium-sized businesses.

The CBA and NAB suffered a dip in satisfaction among so-called micro businesses with an annual turnover up to $1 million.

Carried out by small business consultants DBM, it is the first major survey since November to illustrate the potential brand damage suffered by banks as a consequence of their aggressive rate increases.

Westpac now leads the major banks with a satisfaction rating of 7.2 out of a possible 10, compared with ANZ and CBA on 7 and NAB on 6.9.

DBM managing director Dhruba Gupta said interest rate rises were "more likely to be felt first and possibly felt more acutely" in the micro market.

"A number of factors could have contributed to the November results, but we did find clear evidence that negative reaction to the latest interest rate rises was a factor in the lower satisfaction scores," he said.

The survey was released as Australia's second-largest credit union reported a 32 per cent surge in home loan inquiries in November.

Australian Central Savings & Loans managing director Peter Evers said the surge indicated consumers "have had enough" of the major banks.

Also yesterday, a report by ratings agency Fitch found one in every 100 home buyers was a month or more behind on mortgage repayments at the end of September.

Delinquencies rose considerably after the six interest rate rises over the 12 months to September, according to the report.