Customer trust in UAE banks on the rise despite challenges

Dubai: Perceptions about the UAE’s banking sector remain healthy, with the majority of customers believing that banks are positively dealing with a variety of issues facing the sector, according the UAE Banks Federation’s (UBF) ‘Trust Index’.

A vast majority (72 per cent) of respondents who participated in the survey agreed that their impression towards banks was ‘very positive’ — increasing from 70 per cent in 2015. Additionally, trust index in the sector remained largely steady and robust at 68 per cent despite global challenges and uncertainties.

“Despite economic uncertainties, this year’s Trust Index indicates that perception about the UAE’s banking sector is healthy and steady, as evaluated against a set of crucial parameters in the survey, and that overall trust remains high amongst customers,” said Abdul Aziz Al Ghurair, Chairman of the UAE Banks Federation.

Customers who said their view of banks had improved in the last six months were three times the number of those who assumed a contrary position. The UBF survey found that consumers (38 per cent) are more likely to say that UAE banks are better than financial institutions in their home countries.

The results also revealed that a high proportion of respondents would share positive word-of-mouth about the banking sector in general (74 per cent) as well as their own bank (77 per cent).

The survey reveals that banks are well-equipped to deal with issues such as fostering digital innovation, preventing cybercrime and contributing to national economic development.

More than 82 per cent of the customers believe that banks are positively dealing with a variety of issues facing the sector such as keeping up with digital innovation — up from the 78 per cent registered last year.

The majority of respondents (73 per cent) were also confident of banking sector fortification against potential cybercrime activity; with a figure as high as 73 per cent agreeing that banks contributed significantly to the UAE’s economic development.

A high level of awareness with regards to the UAE’s cashless ecosystem is also reflected in the survey where 85 per cent are aware of the ‘mobile wallet’ concept, a remarkable increase from 76 per cent in 2015.

Most of the customers (79 per cent) were also found to be aware of the ‘Customer Charter’, which gives bank customers in the UAE clear guidelines about the standards of service they can expect from their banks.

The Trust Index was launched by the UAE Banks Federation last year as an annual survey. The second edition of Trust Index surveyed 1,530 adult respondents of various nationalities over multiple channels.