Who Ranks Highest in Hong Kong Retail Banking Satisfaction?
More than half of customers do not completely trust their primary bank, according to J.D. Power's 2019 Hong Kong Retail Banking Satisfaction Study.
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 advisor for financial planning.
It is significant that more than half (54 percent) of customers do not completely trust their primary bank, according to the J.D. Power 2019 Hong Kong Retail Banking Satisfaction Study, released on Thursday.
Citi on Top
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 study finds that four in five (83 percent) 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 percent for those whose needs were identified compared to 43 percent for those who do not experience the same.
Industry of Trust
Similarly, in the age of hyper-personalization, of those customers whose marketing communication is personalized, 64 percent trust their bank, compared to 43 percent who do when communication is not.
«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 at J.D Power.
Switch Provider
As trust is a key driver of loyalty and advocacy, more than one-third of customers (36 percent) who do not completely trust their bank says 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 customers who are satisfied with their bank’s digital channels, 72 percent trust their bank. In comparison, only 21 percent trust their bank when they are not satisfied with its digital channels.
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 percent) and their primary bank’s fee structure (81 percent).
- Improve understanding of mobile banking: Although mobile app usage has grown by 13 percentage points (43 percent in 2019 vs. 30 percent in 2018), two-thirds of customers (65 percent) 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 percent in 2019 vs. 14 percent in 2018), followed by Apple Pay (22 percent in 2019 vs. 19 percent in 2018).
