Welcome!

News Feed Item

Consumer confidence in global banking industry bounces back

- Trust in banks is underpinned by the quality of people's personal banking experience

LONDON, Feb. 17, 2014 /PRNewswire/ -- After a number of years of sharp decline, confidence in the banking industry is on the rise, trust in individual banks is high and most customers across the globe are satisfied enough to recommend their main banking provider, finds EY's 2014 global consumer banking survey.

To view the multimedia assets associated with this release, please visit: http://www.multivu.com/mnr/65450-ey-global-consumer-banking-survey-2014-consumer-confidence 

How well do you know your banking customers? EY's Global Consumer Banking Survey 2014 uncovers eight types.

(Logo: http://photos.prnewswire.com/prnh/20130701/NY40565LOGO-b)

The study, Winning through customer experience, which surveyed over 32,000 banking customers in 43 countries, shows banks are providing traditional banking services well but are viewed as falling short on important aspects of the customer experience, and are also increasingly vulnerable to competition from new providers of banking services.

Heidi Boyle, EY's Principal of Financial Services Customer Practice, says: "Despite another challenging year in the banking industry, consumer confidence has actually gone up. But banks still have some way to go to improve this – for example, increasing transparency around fees and charges. Additionally, improving how they deal with resolving problems or complaints will be critical if banks are to continue to win confidence and build trust."

Confidence and trust are building among bank customers
Globally, one-third of customers reported an increase in confidence in the banking industry compared to a year ago. This is a marked increase on the figures from the previous survey in June 2012, when just 22% reported an increase in optimism. The number of customers whose confidence in the industry has declined in the last 12 months is at 19% – down from a high of 40% in 2012. Around the world, confidence is increasing most in India, where 77% of respondents expressed increased confidence, followed by Saudi Arabia (68%). To the contrary, overall confidence fell most markedly in Spain (by 60%) and Ireland (62%).

Most customers (93%) said that they trust their primary financial services provider; naming, "the way I am treated" as the most important reason for having complete trust in their bank after "financial stability." Recent articles or news stories are in fact one of the lowest influences of trust, with just 8% of customers taking them into account as a reason that impacts how much they trust their bank.

"The survey finds customer experience to be a main driver of trust, and customer experience is also the single most common reason that customers open and close accounts – it is more important than fees, rates, locations, press coverage or convenience," says Boyle.

Customers are on the move
Fifty-two percent of customers have opened or closed at least one product in the past year and 40% plan to in the coming year. Of the 60% of respondents not planning to close or move their accounts, it is not necessarily because they are confident that they are with the right provider: Twenty-two percent of those who plan to maintain their current relationships feel all companies are the same and 17% say it is just too difficult or time consuming to change.

"Bank customers are not being actively retained; they simply remain with their current provider through inertia and are therefore vulnerable to competitors. Meanwhile, new types of financial services providers with new technologies and customized services are penetrating the global marketplace and cannot be ignored," adds Boyle.

Despite improving confidence, customers feel that banks do not always have significant advantage over newer types of banks and technology companies, even when it comes to providing financial advice. More than 30% of respondents believe alternative banking providers are better able than traditional banks to improve how customers conduct business and reach financial goals.

"Traditional banks are performing well on basics like branch access and ATM availability but they are most vulnerable in areas with the highest growth potential. There is real opportunity for alternative providers to dominate the digital offering, personalize the experience and become primary providers," Boyle says.

Complaint levels are high but handling problems well wins customers
Approximately one-third of bank customers contacted their bank about a problem in the past 12 months with 25% feeling very satisfied, 42% feeling satisfied and 33% feeling less than satisfied with the outcome of their complaint. Of customers who were very satisfied, 58% gave the bank more business, while 32% of customers very dissatisfied with the problem-resolution experience closed some or all of their accounts.

Transparency about fees, charges and guidance on how to avoid them are consistently one of the biggest issues for banks across the globe to tackle. They represent 15% of all problems reported and are second only to denials of credit/loan requests and charges when making a purchase as a source of dissatisfaction.

"The high level of customer complaints is a strong signal that banks need to get better at communicating their fees and charges with their customers. The good news is that solving a problem or addressing a complaint creates a critical customer interaction, which, if done well, can actually increase a customer's business," says Boyle.

Taking a fresh approach to segmentation
The extensive survey examines 31 core elements of customers' banking expectations and preferences. In the report, the 35,642 customers were grouped into consumer segments sharing behavioral characteristics, products, channel preference and reasons for trust – rather than only traditional age, geography or income metrics.

Each segment varies by size, assets and willingness to pay more for key benefits and is found in all markets across the world. This segmentation provides a fresh lens to help banks identify strategies that more effectively engage customers and invest resources for future growth.

To download the full report, view the customer segmentation infographic, watch videos discussing the survey's findings and explore data please visit www.ey.com/globalconsumerbankingsurvey.

About EY
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

This news release has been issued by EYGM Limited, a member of the global EY organization that also does not provide any services to clients.

SOURCE EY

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The Internet giants are fully embracing AI. All the services they offer to their customers are aimed at drawing a map of the world with the data they get. The AIs from these companies are used to build disruptive approaches that cannot be used by established enterprises, which are threatened by these disruptions. However, most leaders underestimate the effect this will have on their businesses. In his session at 21st Cloud Expo, Rene Buest, Director Market Research & Technology Evangelism at Ara...
"We do one of the best file systems in the world. We learned how to deal with Big Data many years ago and we implemented this knowledge into our software," explained Jakub Ratajczak, Business Development Manager at MooseFS, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), provided an overview of various initiatives to certify the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldwide re...
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
SYS-CON Events announced today that TechTarget has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget storage websites are the best online information resource for news, tips and expert advice for the storage, backup and disaster recovery markets.
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
"Loom is applying artificial intelligence and machine learning into the entire log analysis process, from start to finish and at the end you will get a human touch,” explained Sabo Taylor Diab, Vice President, Marketing at Loom Systems, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
@DevOpsSummit at Cloud Expo taking place Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center, Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is ...
SYS-CON Events announced today that Datanami has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datanami is a communication channel dedicated to providing insight, analysis and up-to-the-minute information about emerging trends and solutions in Big Data. The publication sheds light on all cutting-edge technologies including networking, storage and applications, and the...
After more than five years of DevOps, definitions are evolving, boundaries are expanding, ‘unicorns’ are no longer rare, enterprises are on board, and pundits are moving on. Can we now look at an evolution of DevOps? Should we? Is the foundation of DevOps ‘done’, or is there still too much left to do? What is mature, and what is still missing? What does the next 5 years of DevOps look like? In this Power Panel at DevOps Summit, moderated by DevOps Summit Conference Chair Andi Mann, panelists loo...
SYS-CON Events announced today that EnterpriseTech has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. EnterpriseTech is a professional resource for news and intelligence covering the migration of high-end technologies into the enterprise and business-IT industry, with a special focus on high-tech solutions in new product development, workload management, increased effi...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing bes...
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, highlighted the current challenges of these transformative technologies and shared strategies for preparing your organization for these changes. This “view from the top” outlined the latest trends and developments i...