Financial news

New research from NTT DATA UK&I, the IT services provider for the banking and financial services industries, reveals that only 33 per cent of banking customers are currently ‘very satisfied’ with their overall experience with their main bank or building society.

NTT DATA research found that nearly half of UK banking customers do not believe that their bank has their best interests at heart, with the mistrust increasing with age. For those aged 50 and over, 51 per cent do not agree that their main bank or building society has their best interests at heart, compared to only 33 per cent of 16 to 26-year-olds.

The NTT DATA survey of 2,000 retail banking customers in the UK, looked into customer opinion and levels of trust for banks or building societies. With the Financial Conduct Authority‘s (FCA) Consumer Duty coming into play recently, the survey comes at an important time.

The new rules came into force on 31 July 2023 and set higher and clearer standards of consumer protection across financial services, requiring firms to put their customers’ needs first and ensure good customer outcomes.

However, while 11 per cent strongly believe that their bank always prioritises their best interests, the majority of customers do not feel supported by their bank at all, particularly when looking ahead to the future. Around 30 per cent stated that their bank or building society supports their financial goals, and only 38 per cent trust their bank or building society to provide them with personalised advice.

Most worryingly, 44 per cent do not think that their bank or building society understands their personal banking needs.

“Imperative that retail banks address these needs as soon as possible”

Jo Bevan-Taylor, head of business consulting, banking and financial markets at NTT DATA UK&I, commented: “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.

“Importantly, banks need to focus on all groups when considering how they will approach the changes they need to make, in order to ensure they aren’t ostracising vulnerable groups. Looking at some of the discrepancies between income and age groups, there are some clear differences in how customers view the products and services they receive. Retail banks need to consider the varying needs of these groups and ensure they do not alienate individuals through inaccessibility for example.

“Now that the new Consumer Duty rules are in place, banks and building societies not only need to prioritise customer satisfaction, personalised communication, and trust-building initiatives, but they will need to report on key areas too.

“This means it will be essential to focus on the design of the user experience, as well as building the right data analysis tools. 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.”