The U.S. ranks as one of the top three countries in overall retail banking performance, according to a new global study by management consulting firm Booz Allen Hamilton; Hong Kong and Switzerland are the other leaders.
The study, “Striving for Growth: Best Practices in Retail-Banking Sales and Service Channels,” reveals that the majority of banks worldwide are failing to meet many customer needs and get the best performance from sales channels like call centers and websites. The comprehensive study, which used customer research and mystery shopping to assess 100 banks across 17 countries, looked at what customers want from their banks, how banks are performing, and best practices to drive profitable growth.
While retail banks have recently made strides in key customer service areas, such as simplified account-opening processes and more robust online and phone access, consumer survey findings show that banks are missing sales- and relationship-building opportunities, both in the U.S. and globally. In particular, most banks do not adequately provide differentiated service offerings for the mass affluent and other segments of the consumer market.
Globally, consumers prefer banking in branches, but more North American consumers are choosing alternative channels. Some 63 percent of customers worldwide purchase savings account products through a branch, compared with only 46 percent of those in North America; 54 percent of global customers purchase mortgages in their branch, while only 35 precent of North American consumers do so. For less complex products, such as credit cards, over half of customers globally, and nearly three-fourths in North America, would shop either online or over the phone, with most preferring online shopping. Affluent consumers overall are 30 percent more likely to prefer using online services over other channels.
U.S. banks perform relatively well across all service channels: branches, Internet, and call centers, as well as channel integration. Out of a representative sample of U.S. retail bank chains, the study revealed which banks ranked highest in each channel and identified best practices as well as performance gaps. Bank branches need to provide better personalized service. U.S. bank branches compare well to global best practices but offer few segmented offerings and limited availability of specialists. High performers: Chase, HSBC
Banks need to provide segmented offerings for the mass affluent, with a sense of exclusivity including increased privacy, and dedicated staff and floors and consider innovations such as pre-populated forms for existing customers with basic information already on file. Call-center performance is low. U.S. bank call centers overall got high marks for accessibility, efficient service and product knowledge, but lag in segmented service and in understanding client needs. High performers were Commerce Bank, Wachovia and Wells Fargo.
