Although 75 per cent of Canadians surveyed say their trust in banks has stayed the same or has increased in the past 12 months, almost 64 per cent say they plan to switch banks or have already done so because of service quality issues, says an Ernst & Young report released Monday.
“Our survey clearly shows that the trust factor isn’t what drives dissatisfaction in Canadians’ banking relationships. It’s the lack of personalized attention and service issues,” said Paul Battista, Financial Services Advisory Leader at Ernst & Young Canada.
Ernst & Young found that only 25 per cent of Canadian respondents say they have less confidence in their banks than they did pre-crisis, compared to 44 per cent of global respondents and 55 per cent in the US. Within Europe, the UK has seen the largest drop in consumer trust (63 per cent).
Though the trust Canadians have in their banks remains high, the survey makes clear that the battle to win over new retail banking customers will be focused largely on improving personalized attention and reducing service issues.
“Thirty-four per cent of respondents say they receive either occasional or absolutely no personalized attention from their banks, making them easy targets for competitive offers,” said Battista. “Service quality stands out as the biggest cause of customer attrition, with 64 per cent of Canadians saying they have changed or plan to change banks for this reason. Banks looking to grow and retain their retail customers will need to focus on making big improvements in these two key areas.”
Other key survey findings:
· 48 per cent of Canadian customers bank with just one bank, and 37 per cent bank with two.
· 38 per cent of Canadians say they’ve changed their main bank in the past, compared to the global average of 36 per cent
· 73 per cent of Canadians would not pay for independent financial advice, believing it should be part of their banks’ service offerings.