Banks must do more to improve the customer experience
TORONTO, Feb. 28 /CNW/ - Although 75% of Canadians surveyed say their
trust in banks has stayed the same or has increased in the past 12
months, almost 64% say they plan to switch banks or have already done
so because of service quality issues, says an Ernst & Young report
"Canadian banks came out of the financial crisis relatively unscathed as
compared to most of their global counterparts. As a result, banks here
have seen the level of trust remain steady or even improve," says Paul
Battista, Financial Services Advisory Leader at Ernst & Young Canada.
"But our survey clearly shows that the trust factor isn't what drives
dissatisfaction in Canadians' banking relationships. It's the lack of
personalized attention and service issues."
In A new era of customer expectation, Ernst & Young finds that only 25% of Canadian respondents say they
have less confidence in their banks than they did pre-crisis, compared
to 44% of global respondents and 55% in the US. Within Europe, the UK
has seen the largest drop in consumer trust (63%).
Though the trust Canadians have in their banks remains high, the survey
makes clear that the battle to win over new retail banking customers
will be focused largely on improving personalized attention and
reducing service issues.
"Thirty-four per cent of respondents say they receive either occasional
or absolutely no personalized attention from their banks, making them
easy targets for competitive offers," Battista says. "Service quality
stands out as the biggest cause of customer attrition, with 64% of
Canadians saying they have changed or plan to change banks for this
reason. Banks looking to grow and retain their retail customers will
need to focus on making big improvements in these two key areas."
The survey suggests that Canadian banks need to reconnect with customers
by improving the customer experience across all channels. Banks that
make positive strides in their mobile offerings should see the greatest
benefits, as only 29% of Canadians are satisfied with mobile banking
"The banks that find innovative ways to effectively deliver
high-quality, personalized service will, in the long run, provide a
strong base for greatly improving customer loyalty," says Battista.
Other key survey findings:
48% of Canadian customers bank with just one bank, and 37% bank with
38% of Canadians say they've changed their main bank in the past,
compared to the global average of 36%
73% of Canadians would not pay for independent financial advice,
believing it should be part of their banks' service offerings.
Brand image rates 4.6/6 to Canadians in what's most important to their
relationship with their banks.
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