Customers are demanding a more personalized service if they are to remain loyal. The successful institutions of the future will be those who offer customer-focused innovative services.
New York, NY (PRWEB) March 3, 2011
Big differences exist between the banking satisfaction of customers in the developing world and those in mature markets, according to an Ernst & Young global consumer banking survey and infographic.
The just-released report, A new era of customer expectation, revealed that 44% of retail banking customers worldwide had less confidence in the banking industry over the past 12 months. Within Europe, the UK (63%), Germany (61%) and Spain (58%) saw the largest decreases in customer confidence. In contrast, emerging markets reported increased levels of trust in banks – as high as 75% in India, for example.
The importance of a bank’s reputation and image is evident in all markets. Globally, brand strength was cited as the main reason for choosing a bank by 39% of those surveyed. A strong brand is particularly important in markets like India, Brazil and South Africa, which are witnessing an influx of foreign institutions, and in certain European countries such as the UK and Spain, which have seen consolidation in recent years.
Attrition continues to increase following the financial crisis, but rates are expected to slow within mature markets, evidenced by customers holding an increasing number of products with their main bank. The survey revealed that Indian and Chinese customers, who were relatively unaffected by the crisis, are more likely to move in the future, with 11% and 13%, respectively, thinking of switching their banks. Comparatively, 5% of US customers, 5% of German customers and 6% of UK customers say they plan to leave.
“Customers are demanding a more personalized service if they are to remain loyal. The successful institutions of the future will be those who offer customer-focused innovative services. Those that do will be able to differentiate their organization and drive for growth,” said Pierre Pilorge, Ernst & Young’s Financial Services Customer Leader. “The keys to success will be brand management, personalized services and efficient pricing. Retail banks that can deliver all three will prosper in a highly regulated and constantly changing global financial services market.”
In evaluating the survey findings, Ernst & Young cites three key areas of focus for banks:
- Rebuilding customer confidence
- Preventing customer attrition
- Enhancing the customer experience through service quality and use of remote channels
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