Half of Customers Do Not Completely Trust Their Bank, J.D. Power Finds

Citibank ranks highest in retail banking satisfaction for second consecutive year

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SINGAPORE – Media
OutReach – 28 Feb. 2019 – Trust needs to be at the core of a
customer’s relationship with their bank, particularly as they look to their
bank as their trusted adviser for financial planning. It is significant that more
than half (54%) of customers do not completely trust their primary bank,
according to the J.D.
Power 2019 Hong Kong Retail Banking Satisfaction Study,^SM released
today.

 

The study
finds that four in five (83%) customers say that their bank representatives do
not spend enough time identifying their specific needs before offering products
and services, with the level of trust being 69% for those whose needs were
identified compared to 43% for those who do not experience the same. Similarly,
in the age of hyper-personalisation, of those customers whose marketing
communication is personalised, 64% trust their bank, compared to 43% who do
when communication is not personalised.

 

“Banking is fundamentally an industry of trust and when customers
trust their banks, they are also more receptive to financial advice and less
likely to switch from their primary bank to other providers, particularly
virtual banks,” said Anthony Chiam, Regional Practice Leader, Global
Business Intelligence – Asia & Australia at J.D Power. “When banks
consistently fulfil their service promise, trust will be earned over time. This
trust often becomes embedded in a customer’s relationship with the bank and
influences future financial decisions and planning.”

 

As trust
is a key driver of loyalty and advocacy, more than one-third of customers (36%)
who do not completely trust their bank say that they will likely switch
provider. With the use of digital channels becoming more prevalent, the
strength of these channels is also instrumental in building customers’ trust in
banks. Of customer’s who are satisfied[1]
with their bank’s digital channels, 72% trust their bank. In comparison, only
21% trust their bank when they are not satisfied with their bank’s digital
channels.

 

When
customers trust their primary bank, they are generally more satisfied (742
points, on a
1,000-point scale), compared with those who do not (649 points) — demonstrating the long-term impact that gaining trust may have.

 

Following are some of the key findings of the study:

 

•  Need for improved communication on
  account features and fee structure: At least four in five customers do not fully understand the
  features and benefits associated with their main account (80%) and their
  primary bank’s fee structures (81%).

 

• Improve understanding of mobile banking: Although mobile app usage has
  grown by 13 percentage points (43% in 2019 vs. 30% in 2018), two-thirds of customers (65%)
  still do not completely understand which mobile banking products, services, or
  features are available to them.

 

• Alipay is the most
  frequently used mobile wallet: One-third of
  customers who use mobile wallets indicate they use Alipay (32% in 2019 vs.
  14% in 2018), following by Apple Pay (22% in 2019 vs. 19% in 2018).

 

Study Rankings

Citibank ranks highest for the second consecutive year in retail
banking customer satisfaction with an overall satisfaction score of 722. Citibank
achieves the highest score in four of the six study factors: product offerings;
account information; account activities; and fees. DBS ranks second with 714 points and Bank of East Asia ranks third with 694 points.

 

The 2019 Hong
Kong Retail Banking Satisfaction Study measures customer satisfaction with the
products and services provided by their primary financial institution. The
study measures overall satisfaction in six key factors: account activities (33%);
account information (19%); fees (16%); facility (16%); product offerings (12%);
and problem resolution (4%).

 

The study,
now in its second year, is based on responses from 2,342 retail banking
customers. The study was fielded between November and December 2018.

 

The
study now also includes the Net Promoter Score® (NPS)[2],
which measures customers’ likelihood to recommend their bank to others on a
0-10 scale.

About J.D. Power in the Asia Pacific Region

J.D. Power is a global leader in
consumer insights, advisory services and data and analytics. These capabilities
enable J.D. Power to help its clients drive customer satisfaction, growth and
profitability. Established in 1968, J.D. Power has offices serving North
America, South America, Asia Pacific and Europe.

About
J.D. Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info