Local banks have ridden roughshod over their bigger Australian counterparts in a new consumer satisfaction survey.

Photo: RNZ / Claire Eastham-Farrelly

A Consumer NZ survey of seven major banks shows TSB Bank way out ahead of the bunch, with 87 percent of its customers very happy with its service.

It's closely followed by the Co-Operative Bank on 82 percent, and Kiwibank in third on 71 percent.

BNZ was not far behind, pleasing a touch under two-thirds (65 percent) of its customers.

Meanwhile the bigger Australian banks were slammed.

Westpac was the best of that bunch, running at 55 percent, while ANZ and ASB brought up the rear, both scoring 52 percent.

Consumer NZ's chief executive Sue Chetwin said heavy-handed upselling techniques from the Australians were driving their customers to despair - particularly insurance products, which customers felt they did not need.

"They might be wrapped around your income or things like credit card insurance - stuff that's completely unnecessary.

Customers wanted more personalised treatment from their banks, Ms Chetwin said, and smaller locally-owned boutique banks created a feeling of intimacy and care.

"Not treating the customer as if they are solely to be had money out of, and treating them like they are customers."