One in five customers in Singapore are looking to switch from their main bank to another in the next 12 months. Banks need to act and not react, Anthony Chiam, Practice Leader at J.D. Power, says to finews.asia.


Anthony Chiam, banks have been emphasizing their reliability and client-centricity. But your latest survey shows a different picture. What went wrong with the banks?

Until now, there has not been a customer satisfaction benchmark that goes down to the granular level as the J.D. Power «2017 Singapore Retail Banking Satisfaction Study». This study provides not only the absolute customer satisfaction level of the bank, but also shows how they are performing relative to their competitors.

Being a global financial center, there should also be an industry-led approach to creating a customer charter. The annual J.D. Power «2017 Singapore Retail Banking Customer Satisfaction Study» could be used as such a benchmark for the charter, while ensuring that all within the organization are held accountable for achieving this benchmark.

According to your survey banks in Singapore do not seem to be efficient in their response to clients. Why is that so?

The reasons why customers at banks in Singapore still perceive their wait-time to be so long are likely due to:

«Reducing queue time should be embedded in the goals of branch staff»

1. Not being acknowledged or greeted at the entrance of the branch – Although some banks have already introduced a greeter at their high traffic branches, this is still not the case across their entire network. Our study shows that being greeted at the door of the branch makes customers feel welcomed and helps to connect the two parties. This also goes a long way to managing the perception of queue time. Furthermore, for basic transactions and enquiries, the greeter can redirect customers to more effectively use self-service channels within the branch.

2. Capacity planning – Very often tellers/low counter positions are not staffed, especially during peak hours. Ensuring that staff breaks are adequately staggered and that counters are fully staffed keeps the queue moving along. In addition to financial metrics, reducing queue time should be embedded in the goals of branch staff as part of overall improved service.

3. Customer centric processes – Banks legacy processes still dictate the experience of the customers. These should be reviewed and have the customer experience placed at the core in the design of all these processes. In some markets, banks have incorporated a cafe and travel agency at the branch to offer customers a more enjoyable waiting period.

In summary, the end goal should not be just managing the queue; it should be to eliminate the queue altogether.

Digital channels become more and more important in banking, especially in retail banking. Will personal advice completely disappear for retail customers?

Banks understand that personal advice is an important channel for cross-selling and deepening relationships. Therefore, almost all premier/priority retail banking customers in Singapore have a relationship manager assigned to them. Banks need to get the balance right between digital and personal interactions in order to build stronger customer relationships.

«The lifetime value of a satisfied customer outweighs the potential short-term cost savings»

Some banks in other markets are looking for ways to bring customers back into the branch to offer advice or promote their products and services. There is a need for bank branches to sell complex products, as advisory and needs analysis are required. That is why the banks have to strike a balance in their channel strategy

Are banks in Singapore ready and willing to recognize the real needs of retail customers?

Banks in Singapore may recognize the needs of retail customers – however, due to stakeholder pressures, cost containment may have been given a higher priority. It is important for the banks to be reminded that the lifetime value of a satisfied customer more than outweighs the potential short-term cost savings.

What basic improvements are urgently needed among banks in Singapore to respond to the needs of the clients?

  • Wait-time at the branch needs to be improved
  • Ensuring your ATMs are available and reliable
  • Making the user experience in the new digital channels a key priority in its design
  • Focusing on solving the pain points of your customers

What are other important findings of your latest survey?

Local banks outperform foreign banks in the account activities (773 vs. 755, respectively) and facility (736 vs. 687) factors as they have a larger number of ATMs and branches across Singapore.

«There is no reason why banks cannot provide clear and understandable information»

Foreign banks perform better in product offerings (716 vs. 687) and fees (667 vs. 621) since they learn from other markets and utilize best practices for the Singapore market. In the customer segment, foreign banks focused on are less sensitive to paying a fee.

In your survey you compare the situation in Singapore with other markets/countries. Where and what can banks in Singapore learn from abroad?

Increasingly, some banks around the world have put a lot of effort towards mapping out the comprehensive customer journey with the bank to improve overall satisfaction. Banks in Singapore should leverage on this best practice to eliminate problems and improve efficiency.

Why is it so difficult for banks to provide understandable information for clients?

With the introduction of more legal and regulatory requirements, banks have introduced terms and conditions which protect themselves. However, there is no reason why banks cannot provide clear and understandable information and at the same time comply with all the requirements.

In what kind of services do banks in Singapore have to invest more to meet the needs of the customers?

They need to understand every episode the customers have with the bank and develop and invest in tools and capabilities that address their pain points.


Anthony Chiam is a Practice Leader for Service Industries at J.D. Power Singapore. He has more than 30 years of B2B and B2C experience in the Financial Services/Payments industry spanning across five markets – London, Singapore, Thailand, Hong Kong and Taiwan. Previously he worked for Mercer and American Express. He has an MBA from the Henley Management School in the U.K. and sits in the Board of Directors of the Metropolitan YMCA Singapore.

J.D. Power and Associates is an American-based global marketing information services company founded in 1968 by James David Power III. In Asia the company has offices in Tokyo, Singapore, Beijing, Shanghai, Malaysia and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the region. The firm is headquartered in Costa Mesa, California. Private investment group XIO Group acquired J.D. Power in 2016.