Research conducted by NTT DATA UK&I has found 46% of people do not believe their banks or building societies have their best interests at heart.
The new research unveils a worrying picture of customer satisfaction and trust within the retail banking industry.
Among the respondents, only 33% expressed high satisfaction, and a mere 11% strongly believe that their bank prioritises their interests. The Consumer Duty rules enforced by the Financial Conduct Authority (FCA) on 31 July 2023, necessitating firms to prioritise customer needs, add to the relevance of these findings.
The mistrust is more pronounced among customers aged 50 and over, with 51% of them expressing a lack of faith in their bank or building society’s intentions, compared to 33% of 16- to 26-year-olds. Moreover, a vast majority (44%) of customers do not believe that their bank understands their personal banking needs, with those in lower income brackets more likely to feel this way.
The survey shows that dissatisfaction is pervasive across age and income groups. Less than 30% of customers believe that their bank supports their financial goals, and only 38% trust them to provide personalised advice. The figures highlight glaring discrepancies between different income groups and ages, particularly in the perception of understanding, support, and trust from their main bank or building society.
NTT DATA UK&I Head of Business Consulting – Banking and Financial Markets Jo Bevan-Taylor said, “While the research doesn’t outline a completely bleak picture, it is concerning to see the overall lack of trust and dissatisfaction customers have with their banks and building societies currently, and it highlights the work retail banks have ahead of them.
It’s imperative that retail banks address these needs as soon as possible to ensure they increase customer trust and satisfaction while not finding themselves in breach of the rules.”
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