Brit Pop(ularity)
U.S. banks may not score high popularity marks with consumers, but their counterparts across the pond aren't faring much better.
A new study from the management consulting firm Accenture shows that loyalty and satisfaction levels among bank customers in the United Kingdom and Ireland have dropped significantly since 2007.
The study found that 46% of British bank account customers are likely to purchase their next financial product from their current provider, down from 66% in 2007. Those who were satisfied with their current bank dropped to 73% from 84%.
Customers also have become more vocal about their dissatisfaction. The percentage of those who complained to their banks rose to 17% from 14%. One bank even received complaints from nearly one in three customers in a 12-month period, the report showed.
"These results provide further evidence that even several years since the financial crisis hit, the relationship between banks and their customers continues to decline," Peter Kirk, senior executive in Accenture's financial services practice and author of the report, said in a press release.
What's more, the survey found that one out of five customer complaints was handled poorly by the banks, he said.
The study was based on the responses of 2,524 current account customers in Britain, Northern Ireland and the Republic of Ireland, completed in October 2010, and compared with the responses of 3,015 account customers in England, Wales and Scotland in November 2007.
No Small Feat
The Federal Deposit Insurance Corp. has recognized a panel of small banks for excellence in reaching out to small customers.
The regulator on Wednesday announced the winners of its 2011 Chairman's Award for Excellence, an honor for bank employees who create and promote programs and products designed to serve low- and moderate-income consumers.
Some of the teams are sizable, but they all came from three banks. WesBanco Bank in Wheeling, W. Va., earned honors for creating new products for low-income consumers. A team at United Bank in Atmore, Ala., picked up the award for developing a transactional account. And employees at Brotherhood Bank and Trust in Kansas City, Kan., were cited for their Hispanic outreach program, designed to encourage the use of banking products in an underserved population.
The efforts of the recognized teams resulted in the creation and marketing of products that are "easy to understand, cost-effective and help put consumers on the road to financial security," FDIC Chairman Sheila Bair said.
Higher Goals
Citigroup Inc. is looking to the nation's best and brightest to help steer the financial services industry.
The bank said Thursday that its foundation will donate $25 million over the next five years to leading universities conducting research on various issues affecting banks in the areas of technology, innovation, globalization and consumer behavior.
This year's awards will go to the graduate schools of Columbia University, Harvard University, the Massachusetts Institute of Technology, Stanford University and Yale University.
"As the economy emerges from the downturn, now is the time to engage the brightest minds at top academic institutions in a research initiative that explores the emerging trends, innovations and technologies rapidly transforming the global economic landscape," Citi's chief executive, Vikram Pandit, said in a press release. "Understanding the impact these forces are having on growth, competitiveness and behavior is critical to navigating the new global economy and catalyzing sustainable and responsible growth."
Each university is eligible for up to $1 million per year, renewable at the discretion of the Citi Foundation, for a total of up to $5 million over five years. Additional participating universities may also be announced.
Storm Response
Some large banks have pledged funds to help people in Joplin, Mo., recover from last month's devastating tornado.
JPMorgan Chase & Co. has committed $225,000. The company said Tuesday that it would donate $25,000 to a local disaster-response group, Convoy Hope, and that it had made the rest of its commitment to the American Red Cross to provide medical help, food and sanitation services.
U.S. Bancorp is donating $100,000 to tornado relief and rebuilding. The Minneapolis company said on May 25 that it would make the following donations: $50,000 to the Community Foundation of Southwest Missouri Inc.'s Joplin recovery fund; $25,000 to American Red Cross's greater Ozarks chapter in Springfield; and $25,000 to United Way Worldwide. U.S. Bancorp's branches in the Joplin are collecting donations for the Red Cross as well.
The storm was the single deadliest tornado in decades, killing at least 134 people and destroying 8,000 homes and 500 businesses.
