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In the fight for market share banks must make branches and customer service top priorities |
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- 21% of respondents have moved bank in the last two years due to their dissatisfaction with the way they have been treated by their bank;
- 53% said they would only place their savings in a bank with branches they could visit;
- 65% would only take out a mortgage after speaking with someone face-to-face;
- 66% have their current account where they receive the best level of service compared with 30% who place their current accounts where they earn the highest interest.
Twenty one per cent (21%) of banking customers have moved their banking relationship over the past two years due to their dissatisfaction with the way their bank treated them, highlighting the need for banks to ensure they are focused on customer service.
According to a YouGov survey for Deloitte, the business advisory firm, the existence and accessibility of branches, along with face-to-face interaction, remains a key consideration for customers with more than half (53%) saying they would only place their savings in a bank with branches they could visit; and 65% saying they would only take out a mortgage after speaking with an advisor face-to-face.
Further, customers place more importance on the level of service they receive than on the interest rate when choosing which bank to have their current account with. Sixty-six per cent have their current account where they get the best level of service, whereas only 30% choose to have their current account where they earn the highest credit interest.
Neil Tomlinson, head of retail banking consulting at Deloitte, commented: “The importance of branches in the banking sector must not be underestimated. Branches remain the primary channel through which banks interact with many of their customers, and any businesses considering expanding their remit to include banking services will need to incorporate a branch network.
“The fundamental battle for current account market share and balances must be fought out in branches, where face-to-face interaction is the keystone to engaging customers. Our research showed that 58% of customers would be more likely to open a current account at a bank with branches open in the evenings and on the weekend. Face-to-face contact is a key requirement, and particularly so for products such as mortgages – where customers are unwilling to compromise on face-to-face contact.”
Ian Foottit, financial services strategy partner at Deloitte commented: “The need for the banks to restructure their balance sheets away from excessive wholesale funding has been driving up the cost of retail deposits for the banks at an alarming rate, particularly the rates being paid on so-called “hot money” products such as fixed term bonds. Fortunately for banks, our findings confirm that for some customers, and for some part of their overall deposits, it isn’t all about the interest rate the banks offer.
“At a time when banking customers are more aware of their finances and are taking decisive action to source the best service, and with service-driven new entrants on the side-lines, banks need to ensure that they are meeting these demands if they are not to run the risk of just competing on price.”
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Note to editors
About the survey
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2000 adults. Fieldwork was undertaken between 18th - 21st September 2009. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
About Deloitte
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTT and its member firms
The information contained in this press release is correct at the time of going to press.
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