Retail banks in Asia-Pacific and Europe struggle to win customer loyalty

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Our two customer loyalty surveys polled more than 10,000 existing retail banking customers in Asia-Pacific and Europe to get their feedback on:

  • Product and service relationships
  • Customer satisfaction
  • Day-to-day interactions
  • Future intentions and expectations

The reports highlight the risk and opportunities facing the retail banking sector in each region. We also identify steps banks must take if they are to continue expanding their customer base in a challenging and changing market.

Understanding customer behavior in Europe
The financial crisis has substantially changed customer attitudes toward banking. In our survey of over 6,000 European retail banking customers, 45% of respondents said that the crisis has had a negative impact on their ability to trust the banking industry.

With diminishing trust comes diminishing loyalty and our survey uncovered a marked and significant demise in the fidelity banks enjoy among their customer base.

The concept of a primary bank, with which customers hold most of their accounts and do the majority of their business, is blurring across Europe.

Nearly a quarter of customers polled had at some point changed their bank account, with 10% of the change happening in the last two years alone. An additional 11% say that they plan to change their main provider in the future. Other drivers for changing one’s primary banks are price, service and products.

Read the full report, Understanding customer behavior in retail banking: the impact of the credit crisis across Europe

Pursuing customer loyalty in Asia-Pacific
Customer loyalty at retail banks is diminishing across Asia-Pacific, despite the fact that the region fared well during the financial crisis.

Our survey polled more than 4,700 existing customers across Asia-Pacific and found that an increasing number of customers are using multiple institutions to meet their needs.While customers are not leaving their primary banks, they are choosing to go to a different bank when a new need arises.

Only 26% said they hold four or more products at their primary bank, although over 50% have had a relationship with their main bank for more than 10 years. Of those customers with multiple products at one bank, only 29% believe they are being rewarded for their loyalty.

And, findings show that the decline in customer satisfaction could continue to rise if banks don’t close the gap between customer expectations and the way they recognize and reward loyalty.

Read the full report, Retail banking in Asia Pacific: pursuing customer loyalty