When it comes to banking, Canadians want quality customer service. This according to an Ernst & Young survey published Monday, which found that nearly 64% of Canadians plan to switch banks or have done so in the last year because of service quality issues.
“Our survey clearly shows that the trust factor isn’t what drives dissatisfaction in Canadians’ banking relationships,” commented Paul Battista, financial services advisory leader at E&Y. “It’s the lack of personalized attention and service issues.”
Although the news might be grim for banks with poor customer service, the survey found that only 25% of Canadians have less confidence in their banks that they did before the global recession.
That’s compared with 55% of respondents in the U.S. who have lost some confidence in their banks.
Battista said although banking confidence varies between nations, the “battle” to win new customers is likely to focus on improving customer service.
“Thirty-four percent of respondents say they receive occasional or absolutely no personalized attention from their banks, making them easy targets for competitive offers … Banks looking to grow and retain their retail customers will need to make big improvements in these two key areas.”
And that’s exactly what Coast Capital Savings plans to do.
According to president and CEO Tracy Redies, the Surrey-based credit union plans to become a “disruptive innovator” in the financial world with products and services that meet customer needs.
“I do believe it’s important that you engage with the customer first before you start selling them [products], because you have to earn that right to have that relationship with the client,” Redies recently told Business in Vancouver. “Too often, whether it’s banks or other companies, they want to flog as many things as they can at you in one transaction … What we’re trying to do for people is make it simpler for them so they can sleep at night.”
For more about Coast Capital and Redies, check out BIV’s recent Influential Women in Business Awards (See “Drawing on credit” – issue 1112, February 15 to 21.)