According to new research, customer satisfaction for the banking industry is down by 2.7%. Not surprisingly, negative publicity from the Royal Commission into Financial Services is to blame.
The Roy Morgan report, which is based on interviews with thousands of banking customers, suggests it will be a major challenge for banks to even retain current satisfaction levels. Not all the problems highlighted in the report are new either: Roy Morgan says the focus on banks has put other long-standing concerns – like bank fees and charges – back in the spotlight.
Guilt by association
Smaller banks have sidestepped the brunt of the Royal Commission’s adverse findings, with the big four banks getting most of the attention. And although satisfaction with smaller banks hasn’t dropped as sharply as the big operators, it’s still down — the entire sector is tarnished. In the public’s mind, the entire industry – big banks and small banks – has a big job ahead to regain trust. This highlights the need to actively connect with customers to help keep the relationship strong.
Is the worst yet to come?
Roy Morgan’s research covers the six-month period ending September 2018. With another round of Royal Commission hearings yet to come and all of the big four banks back in the firing line, there’s a chance a lot more skeletons will be uncovered. The banking sector should also brace for many more months of media speculation, with the Commission’s final report now due until February 2019.
Taking the lead
It’s up to individual banks to work on reputational enhancement, and the time to start work is now. While tighter rules and regulations in the wake of the Royal Commission are inevitable, banks can take the lead by embracing strategies to improve service and provide extra value to customers.
At Money101, we believe customer education is a key strategy for delivering those outcomes. By providing the tools your customers need to make better financial decisions, you demonstrate that you care about their financial wellbeing. Our industry-leading e-learning units covering a broad range of topics are affordable, and ready for you to implement now.
Why not give us a call to discuss how we can partner with you to help build your customer relationships?