SINGAPORE - 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.
NOTE: One chart follows.
[1] Comparison between Highly Satisfied (index score above 782 points) and Dissatisfied (index score below 599 points).
[2] Net Promoter,® Net Promoter System,® Net Promoter Score,® NPS,® and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.
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.
