SunGard survey finds banks in Southeast Asia, Mideast lagging customer expectations

This is negatively affecting the customer experience and driving a trend towards multiple banking relationships, which could affect future profitability and agile growth, the research indicated. 

SunGard surveyed more than 1,000 consumers in 10 countries across the Middle East and Southeast Asia about current attitudes and expectations of the consumer-banking relationship. The Bank Readiness Index research was undertaken in the third quarter by Loudhouse Research. 

The countries covered were Thailand, Indonesia, Malaysia, the Philippines, Kuwait, Qatar, Saudi Arabia, the United Arab Emirates, Jordan and Bahrain.

Trust is high but consumer perception is modest at best, affecting loyalty. 

While more than 75 per cent of respondents in emerging markets in the surveyed countries trust their bank, fewer than half felt their bank understood their needs well. This is evident in the increasing trend towards multiple banking relationships, driven partly by growing demand for service personalisation.

Banks are not seen as the primary financial adviser. Consumers are almost twice as likely to turn to family for help in personal financial decision-making than to a bank. A total of 37 per cent claim to have little or no financial knowledge, presenting an opportunity for banks to educate and advise their customers more to deliver an improved client service and drive growth for their business.

Meanwhile, banks are ignoring customer demand for an improved, integrated multi-channel experience.

A total of 95 per cent of respondents still regularly visit their bank branch. When asked to select one or more reasons for doing so, 58 per cent said they went primarily to get help and advice. 

Avoiding security concerns with digital channels was another key concern, with 36 per cent of respondents flagging it. 

Face-to-face interaction was also important to 35 per cent of respondents. Despite such high usage, the branch was ranked as a top-three improvement area, with resolution of complaints cited as the worst part of branch service. 

Dissatisfaction with digital channels is also high. When asked to name one or more areas they would like to see their banks improve, 55 per cent highlighted online banking and 45 per cent mobile banking services. 

This is another area of opportunity for banks, as 47 per cent of respondents are currently not using mobile banking and could be targets for this increasingly popular banking feature. One in two respondents expects the bank to deliver a better mobile experience in the future. 

Another finding is that the quest for convenience, product range and personalised service is driving multiple banking relationships. 

Convenience is the biggest driver of multi-bank relationships, with 65 per cent of consumers citing this as the top factor for having more than one financial service provider. Forty per cent have relationships with three or more financial service providers. 

Product range was the second-highest factor driving multi-bank relationships, ranked by 44 per cent. A view of the financial products used reveals significant opportunity for cross- and up-selling by banks. For example, customers tend to use their primary bank for account and card products and services, but far less for insurance or loans. 

Meanwhile, 25 per cent regard service personalisation as the driver to hold more than one banking relationship. Only about half of the respondents felt their bank delivered a very personalised service and fewer than half felt their bank understood their needs well. However, nearly 60 per cent of respondents are willing to offer more personal information to receive customised products and services. 

Dean Young, vice president of product management for SunGard’s retail banking business, said that despite the fact that banks in emerging markets enjoy a high level of consumer trust, this research illustrated that they are not capitalising on this. 

Consequently, more consumers are pursuing multiple banking relationships, which can result in erosion of primary bank profitability and growth. 

“Banks must invest in enhancing their multi-channel propositions to empower staff to serve customers more effectively and drive greater revenue from existing relationships and prospective customers.”SunGard is one of the world’s leading software and technology services companies. SunGard serves approximately 25,000 customers in more than 70 countries.