Consumer NZ finds widespread dissatisfaction with fees, rates, and service across all banks
Not a single New Zealand bank has qualified for Consumer NZ's People's Choice Award in 2026 — the first time in a decade that the entire sector has failed to clear the customer satisfaction threshold, and a timely reminder for mortgage advisers of why clients are increasingly open to switching lenders.
The result is based on an online survey of 1,958 New Zealanders conducted between 20 February and 23 March.
Consumer NZ CEO Jon Duffy said the findings pointed to a sector-wide problem.
"Everyday banking hasn't kept pace with what customers expect. Many customers don't feel they're getting fair value, especially when it comes to fees, interest rates, and how banks respond when something goes wrong," Duffy said.
Westpac worst, Kiwibank below average on trust
The research painted a stark picture across the sector. Forty-three per cent of customers think bank profits are unacceptable, with lower-income New Zealanders the most critical.
Westpac ranked lowest across the most measures — including responsible lending, value for money, timely responses, fees and charges, phone and branch banking, and overall customer satisfaction. Kiwibank trailed the sector average of 75% on trust, scoring 70%. The Co-operative Bank was singled out by Duffy as the standout performer on customer service, despite not clearing the award threshold.
The picture looks similarly unflattering from the broker side of the ledger. A separate Adaptive Intelligence survey of 224 mortgage advisers, conducted in April, found BNZ ranked last among the major banks with a weighted performance score of just 58% — described as "a clear laggard among the main banks" — while non-bank lenders outperformed all banks, with Pepper Money leading at 81%.
Low switching rate signals opportunity for advisers
Despite the frustration, only 4% of New Zealanders switched banks in the past year. Duffy pushed back on the idea that changing banks is too complicated.
"It's consumer behaviour that helps encourage competition and put pressure on banks to sharpen pricing, lift service, and earn trust. By always keeping an eye out for the best deal and moving when you find a better one, New Zealanders will find they have more options and better leverage," he said.
That 4% switching rate represents both a challenge and an opening for advisers. Clients dissatisfied with their current lender may not have considered the alternatives — and in a market where no bank has earned the satisfaction seal of approval, the case for independent advice has rarely been stronger.
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