More give, less take' - it's not just child's play

EMBARGOED: 8:00PM Saturday, 13 March 2010

NAB's new brand campaign will kick off during the NAB Cup final today, Saturday, 13 March highlighting NAB's commitment to customers of 'more give, less take'.

NAB's fair value commitment

  • NAB is committed to improving its relationships with customers and the community. This is a long term business strategy to develop and deliver fairer banking practices for customers.
  • Last year NAB made a pledge to make banking fairer and it has since led the industry in abolishing a number of the most disliked fees by customers across its Personal and Business banks and providing more transparency on interest rate pricing.
  • NAB is looking to do things differently and bring more competition and choice to bank customers.
  • NAB will invest more than $155 million over three years, refurbishing, relocating to more convenient locations and opening more branches than ever before, to ensure its customers have the right branches in the right places.
  • Further investment in providing a range of more accessible banking options for our customers including new banking formats ie NAB on Wheels, NAB Kiosks and NAB Express Walls.
  • Increased concentration on providing customers with more help, guidance and advice about how to make the most of their money.
  • NAB will be investing in five new Business Banking Centres around Australia to ensure there are more business bankers in more places.
  • During the height of the GFC and in a time when competitors were retreating from the market, NAB supported business lending ahead of system, lending $35 billion to SME Australian businesses in 2009 (to October end), growing its overall SME lending book by $5bn to in excess of $100bn.

NAB's new brand marketing campaign

  • NAB's new brand marketing campaign will continue to demonstrate that NAB is leading the way to do the right thing for customers and changing banking to be "the way it should be".
  • "more give, less take" is the way we sum up the new approach NAB is taking – providing give and take, addressing the previous imbalance in relationships between banks and their customers.
  • "more give, less take" acknowledges that banking needed to change, and NAB is taking the leadership position in this change.
  • The campaign activity will include three television commercials and a number of other marketing channels including radio, outdoor and online.
  • The marketing campaign will be running over the next few months, with more activity planned for the rest of the year to increase NAB's presence and tell the Bank's story.
  • The NAB brand activity builds on the 'Change your Bank. We are' and 'Not all banks are the same' activity.

Results to date of NAB's commitment to more give, less take:

Customer satisfaction:

  • NAB's personal customer satisfaction levels improving: NAB's Roy Morgan Main Financial Institution personal customer satisfaction level in January 2010 was 72.4%, this represents an National Australia Bank Limited ABN 12 004 044 937 improvement of 0.6% for the month with an improvement of 2.6% over the last 12 months. NAB's MFI customer satisfaction levels have grown ahead of the average of the other three majors (ANZ, CBA and WBC) for the month, quarter, YTD and annual basis.
  • Overall good service lifting: According to data from Roy Morgan's MFI image statement "Providing Overall Good Service" NAB has seen more improvement than other major bank over the past few months.
  • Customer complaints halved: NAB has seen its customer complaints decrease by almost half since it started abolishing transaction account fees on 1 September 2009 (from August 2009 to January 2010). In addition, there has been a 37% reduction in credit card related complaints in January due to abolishment of late payment fees.

Transactions / household deposits:

  • Record number of new NAB Classic transaction customers: NAB has welcomed over 35,000 new NAB Classic transaction account customers since abolishing monthly account service fees on 22 January 2010.
  • Household deposit volume growing most of majors: NAB's household deposit volume growth for the October 2009 to January 2010 quarter was 3.2%, bringing YTD growth (since September 2009) to 4.4% - according to the latest APRA data - the most of any other major bank.
  • Attracting new customers & also retaining more customers: In the financial year to the end of January 2010, new NAB Personal Banking transaction account openings up by 25% while closures fell by 22% compared to the same time last year.

Home loans:

  • Significant lift in customers applying for NAB home loans: There has been a surge in the number of Australians approaching NAB for a home loan over the last month. The uplift is across all NAB home loan brands, including an 100% uplift in applications in the broker market via our Homeside brand – partly attributed to having had the best standard variable rate for the past nine consecutive months (since June 2009). NAB's standard variable home loan interest rate is currently 6.74% per annum.
  • Home loan growth quadrupled: In February 2010, NAB's home loan volume growth was fourtimes greater than February 2009.

NAB's leadership position on bank fees

Bank fees abolished or cut by NAB:

  • Abolish $4 and $5 monthly account service fees on NAB's most popular everyday personal transaction accounts: Classic and e-Banking (effective January 22, 2010)
  • Abolish $30 overdrawn account fees on all personal transaction and savings accounts (effective September 1, 2009)
  • Abolish $25 over-limit fee on all NAB credit cards (effective December 4, 2009)
  • Cut $30 late payment fee on all NAB credit cards to $5 (effective December 4, 2009)

Business fees abolished:

  • Abolish $13 Inward Dishonour Fee charged for dishonoured cheques received (effective February 1, 2010)
  • Abolish $60 Outward Dishonour Fee charged when funds are insufficient to cover cheques or electronic payments drawn on an account (effective February 1, 2010)
  • Abolish $50 Periodical Payment Deferral Fee charged when they are insufficient funds to meet a recurring payment (effective February 1, 2010)
  • Cash Handling Fee of 0.25% of total charged for cash amounts greater than $5,000 that are withdrawn or deposited over the counter in one day (effective February 1, 2010)
  • Overdrawn (Reference) Fee – we will introduced a $1000 buffer which will eliminate 65% of all overdrawn fees currently charged to small business customers (effective 1 May, 2010)

Other bank fees abolished effective January 22, 2010:

  • Abolish $3 branch withdrawal and $1 cheque withdrawal fees on e-Banking accounts
  • Abolish $6 monthly account service fee on Clear Banking accounts National Australia Bank Limited ABN 12 004 044 937
  • Abolish monthly account service and transactions fees on Passbook accounts
  • Abolish monthly account service and transaction fees on 7 other transaction accounts

Other initiatives:

  • Joined forces with rediATM to create one of Australia's largest ATM networks so customers can avoid paying additional ATM fees in over 3,100 locations (effective late-2009).

Media contacts:
Luisa Ford, NAB Corporate Affairs – M: 0411 024 104
Gillian Griffiths , NAB Corporate Affairs – M: 0419 667 783