Partner Article

Less than half say banks are “fair?

Customer service levels have improved at retail banks, but customers are less likely to recommend their provider.

According to new research by consultancy firm Accenture, the numbers of customers switching banks has declined from 16% to 11% in the last year.

The survey of nearly 4,000 current account customers in the UK and Ireland showed the number who are satisfied with their bank has risen from 56% to 60% in the same period.

In addition to this, the number of customers complaining about their bank was down from 17% to 13%, and more customers were satisfied with the complaint handling process.

Despite these positive signs, the survey indicated British customers were less likely to recommend their bank to family and friends, the number falling from 61% to 47%.

Less than half of customers surveyed believed their bank to be transparent and fair, or to be providing good value for money.

Peter Kirk, head of Accenture Banking Distribution and Marketing Services in the UK, and author of the research, said: “These results show that the banks’ efforts to fix underlying service issues and engage better with their customers are working.

“However, while customers may think their own bank is doing a decent job, the banking industry as a whole still has a long way to go to rebuild its reputation and win back the advocacy of its customers.

“In order to rebuild relationships, banks need to invest more in improving customer service, including meeting the demands of the changing consumer, especially young people, who want to be able to do their banking when it suits them by using digital channels such as online, mobile and social media.

“They should also look at rewarding customers through loyalty schemes.”

Six percent of customers surveyed had swapped their current account, and of those 23% had experienced problems with the process; although many said switching was worth it.

Of those who did not switch their main current account, 90% had no desire to change providers, and the rest wanted to change but either though the process would be too risky, or that it would take too long.

Mr Kirk continued: “With nearly a quarter of those switching their current account still experiencing problems, the industry certainly needs to tackle the shortcomings in the system to create fluidity in the market.
“However, there is also a clear problem that customers perceive the switching process to be overly cumbersome, which does not necessarily match reality, and this needs to be addressed.”

This was posted in Bdaily's Members' News section by Tom Keighley .