UK retail banking customers
are now more likely to switch their primary bank account, due in
part to the belief that lenders are more interested in maximising
profit than protecting consumers’ interests.
The headline-grabbing
conclusion of the 2010 JD Power UK Retail Banking Satisfaction
Study was that 12% of bank customers in the UK say that they
“definitely will” or “probably will” switch to another bank – an
increase of two percentage points from 2008.
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In addition, the percentage
of customers who indicated they have switched banks during the past
12 months has increased to 7% in 2010, compared with just 3% in
2008.
Stuart Crawford-Browne,
senior research manager at JD Power and Associates, said:
“Customers in the UK hold generally negative perceptions of their
banks’ motives, particularly regarding the pursuit of profit at the
expense of the best interests of their customers.
“Overcoming these image
problems will be an important step in salvaging customer loyalty
rates, which are key to ongoing profitability.”
Based on average scores
across six separate categories – problem resolution; account
activities; fees; product offerings; account information; and
facility – the 2010 survey reported that overall satisfaction among
retail banking customers’ averages 683 on a 1,000-point scale in
2010.
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By GlobalDataHSBC’s direct banking
subsidiary First Direct topped the survey with a score of 766,
followed by The Co-operative Bank (759) and Nationwide
(710).
First Direct performed
particularly well in three of the six factors: account activities,
account information and product offerings.
First Direct also came top in
a survey conducted by consumer organisation Which? in
August (see RBI 638).
The Co-operative Bank
performed particularly well in the JD Power report in the fees and
problem resolution parts of the survey.
“High-performing banks have
differentiated themselves from the rest by offering simplicity,
accessibility and personal service and cultivating an image that is
customer-focused and conveys empathy to customer needs,” said
Crawford-Browne.
“Despite efforts by many
banks to become more customer-focused, there still appears to be a
gap between account holder expectations and banks’ ability to
deliver on them. While UK bank customers historically have been
slow to switch primary financial institutions, their frustration is
mounting.
“It is increasingly likely
that customer patience will reach a breaking point and, unless
things change, take their accounts away from high street banks and
go to institutions that will listen to and accommodate their
needs.”
With a score of only 646, Santander came bottom of the 13
brands surveyed by JD Power: it also performed poorly in the
Which? survey, beating only Lloyds’ brands Halifax and
Bank of Scotland.
The headline-grabbing
conclusion of the 2010 JD Power UK Retail Banking Satisfaction
Study was that 12% of bank customers in the UK say that they
“definitely will” or “probably will” switch to another bank – an
increase of two percentage points from 2008.
In addition, the percentage
of customers who indicated they have switched banks during the past
12 months has increased to 7% in 2010, compared with just 3% in
2008.
Stuart Crawford-Browne,
senior research manager at JD Power and Associates, said:
“Customers in the UK hold generally negative perceptions of their
banks’ motives, particularly regarding the pursuit of profit at the
expense of the best interests of their customers.
“Overcoming these image
problems will be an important step in salvaging customer loyalty
rates, which are key to ongoing profitability.”
Based on average scores
across six separate categories – problem resolution; account
activities; fees; product offerings; account information; and
facility – the 2010 survey reported that overall satisfaction among
retail banking customers’ averages 683 on a 1,000-point scale in
2010.
HSBC’s direct banking
subsidiary First Direct topped the survey with a score of 766,
followed by The Co-operative Bank (759) and Nationwide
(710).
First Direct performed
particularly well in three of the six factors: account activities,
account information and product offerings.
First Direct also came top in
a survey conducted by consumer organisation Which? in
August (see RBI 638).
The Co-operative Bank
performed particularly well in the JD Power report in the fees and
problem resolution parts of the survey.
“High-performing banks have
differentiated themselves from the rest by offering simplicity,
accessibility and personal service and cultivating an image that is
customer-focused and conveys empathy to customer needs,” said
Crawford-Browne.
“Despite efforts by many
banks to become more customer-focused, there still appears to be a
gap between account holder expectations and banks’ ability to
deliver on them. While UK bank customers historically have been
slow to switch primary financial institutions, their frustration is
mounting.
“It is increasingly likely
that customer patience will reach a breaking point and, unless
things change, take their accounts away from high street banks and
go to institutions that will listen to and accommodate their
needs.”
With a score of only 646, Santander came bottom of the 13
brands surveyed by JD Power: it also performed poorly in the
Which? survey, beating only Lloyds’ brands Halifax and
Bank of Scotland.
