Dubai: More people in the UAE are enjoying positive banking experience, but banks still run the risk of losing their customers this year if they don’t revise their strategies.
Within the next few months, one in ten people in the country and in over 30 markets around the world are likely to leave their bank and an additional four in ten are unsure if they will stay, according to the World Retail Banking Report 2013 released recently by consultancy firm Capgemini and not-for-profit group Efma.
The report noted that while customer experience has improved in many countries, only a few banks are coming up with new offerings and connecting with their customers in a personalised way.
Back in the days when banking was always done face-to-face and products were simple and transparent, the report said, customers felt a strong connection with their bank. Trust and confidence levels were also high before small banks were consolidated into larger, “more impersonal” institutions and service was prioritised over sales.
“One of the biggest problems facing retail banks today is their inability to stand out in an increasingly commoditised and competitive marketplace. Few banks are forging innovation in developing new products. Nor are they connecting with customers,” the report, obtained by Gulf News, said.
The report, which measured perceptions of 18,000 customers in 35 markets around the world, including the UAE and Saudi Arabia, found that in most markets, “quality of service” is the single most important factor driving people to move to other banks.
On a positive note, most countries have managed to lift customer satisfaction levels a bit. The overall customer experience index (CEI), part of the report, increased slightly in 2013, from 72.1 to 73.5, with Canada, United States and the Philippines topping the list.
The UAE is ranked 18 on the list, scoring 73, up from 69.7 last year. The number of customers reporting positive experience in the UAE has likewise edged up by 3.2 per cent, from 36.8 per cent in 2012 to 40 per cent this year.
Considering the number of retail banking customers still not feeling loyal to their bank, Jean Lassignardie, chief sales and marketing officer for Capgemini Global Financial Services, said “banks need to close the gap and build customer-centricity into their DNA.”
“With banking services commoditised, banks must seek to differentiate themselves and build customer loyalty in other ways. Providing the right products at the right time through preferred and emerging channels is one clear way to build lasting customer loyalty,” he added.
