A new era of customer expectation. Global Consumer Banking Survey 2011
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25 Septembrie 2011 |
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ERNST & YOUNG S.R.L. |
Adresa
Strada Dr. Felix Iacob, Nr. 63-69
Cladirea Premium Plaza, Etaj 15
011033 Bucuresti, Sector 1
Telefon
+40-21-402.40.00
Fax
+40-21-310.71.93
Website
www.ey.com
Executive summary
Globally, retail banks are entering a new era. Setting out a clear strategy is becoming more difficult as regulatory and political intervention changes the market structure, and banks are under enormous pressure to restore public confidence in the role that they play in society. As banks respond to these structural pressures across markets and strive to obtain a competitive advantage, the challenge remains to keep the customer experience and wider brand perceptions central to all strategic thinking.
Retail banking is a regional business directly influenced by local cultural drivers, so global trends are few and far between. We have found huge differences between the customers of the developing world and those in the mature markets. Nevertheless, as consumer behaviors become more homogenized and banks look to new markets, we believe there are opportunities to learn from the experiences of other economies. It is clear that as banks consider ways to rebuild trust, improve service to meet customer expectations, and reduce attrition, their efforts will need to be carefully tailored to the unique requirements of each domestic and regional market in which they operate.
For banks to compete, differentiate and grow in this new customer era, they must swiftly accelerate their innovation around banking products and service offerings. Those that do so will enrich their brands and protect and increase market share at a time when customer loyalty is no longer guaranteed.
This report highlights some of the key issues that need to be addressed as the retail banking industry of the future takes shape.
Rebuilding customer confidence and the power of the brand
Our findings highlight the intense and ongoing impact of the credit crisis on trust levels while demonstrating the dichotomy across local banking markets in the mature and emerging countries.
- Globally, 44% of customers say their confidence in the banking industry decreased in 2010
- Within Europe, the UK (63%), Germany (61%) and Spain (58%) have seen the largest falls in customer confidence
- However, in emerging markets trust has risen, with 75% of respondents in India, for example, saying their trust in banks increased last year
The banking industry in mature markets has witnessed a wholesale and ongoing shift in confidence, and never before has loyalty management and personal customer attention been such an issue for the sector. In contrast, the emerging markets now offer huge opportunities for banks looking to expand internationally, as most have felt less of an impact from the credit crisis and instead have a growing middle class of customers looking to diversify their bank relationships.
Rebuilding trust is a challenge for individual banks and for the industry as a whole, in particular across mature markets. Negative customer perceptions of the disruption banks have caused to the wider economy, through the under-capitalized and over-leveraged practices that led to the credit crisis, continue to prevail. In recent years, we have seen that being profitable is not enough. The role that banks play in supporting the wider economy has been highlighted, and a wide variety of stakeholders are now demanding a more responsible banking industry if there is to be a restoration of customer confidence.
