Global banking outlook: 2013-14
Rebuilding reputation is a long-term project, but there are several steps banks can take today.
Although customers are broadly satisfied with their banking relationships, the industry as a whole remains tarnished by the financial crisis. As our 2012 Global Consumer Banking Survey showed (see chart below), confidence in both developed and rapid-growth markets has dropped. More recent issues such as LIBOR-related headlines have not helped matters.
Banks also need to restore their reputations with shareholders. Implementing compensation models that recognize a lower-return environment will improve shareholder relations and shareholder returns.
Rebuilding reputation is a long-term project, but there are several steps banks can take today:
- Refraining from activities that do not have a demonstrable customer benefit
- Using big data to provide targeted products and services—not selling it to third parties
- Reassessing governance models (see our Toward Effective Governance of Financial Institutions report, produced in collaboration Tapestry Networks)
- Educating the broader market about the crucial intermediary role banks play for institutional investors such as pension funds
Consumer responses on industry confidence and bank satisfaction
How has your confidence in the banking industry changed over the past 12 months?
Source: The customer takes control, Global Consumer Banking Survey, EY, June 2012