Over 50% of retail banking customers likely to leave their bank by the end of 2013

According to the tenth annual World Retail Banking Report 2013 (WRBR 2013) released by global provider of consulting, technology and outsourcing services Capgemini and Efma, an industry association for European financial institutions, to re-build the customer-bank relationship, banks need to become more customer-centric by leveraging vast amounts of customer data and by further developing mobile capabilities to create more personal interactions.

The cornerstone of the WRBR 2013 is its extensive customer survey and Customer Experience Index (CEI), which measures perceptions of 18,000 customers in 35 markets about the factors that matter most to them across channels, transactions and products. The WRBR 2013 unveils that country level variations exist, with 11 of 35 markets recording a relative increase of more than 20 percent in their share of customers with positive experience, while nine markets saw a decline in their share of customers with a positive experience.

Data shows that quality of service is the single most important factor driving customers to switch banks across most regions with the exception of North America where fees mattered most, followed closely by quality of service. The report also pints out that almost 50 percent of customers or less are satisfied with their banks in five core areas including knowledge of customers needs and preferences (37 percent satisfied), product-channel fit (43 percent satisfied), trust and confidence (51 percent satisfied), intimacy and relationship building (43 percent satisfied) and providing a consistent multi-channel experience (44 percent satisfied).

The reports customer survey reveals that mobile banking is emerging as a key tool for banks to drive customer-centricity, enable sales, influence the product-channel mix and achieve differentiation. In developing markets and for younger customers, the quality of mobile service has been found to be a significant influence on the customers decision to choose or leave a bank.

Some banks have already realized that mobile is a key tool for differentiation. According to the survey, BNP Paribas in France believes that digital is the new way to engage its customers and has developed mobility solutions for a more personalised customer experience and to drive more subscriptions to their banking products.

Patrick Desmarès, Secretary General, Efma has stated that by the end of 2013, there will be more mobile devices than people with a predicted 10 billion mobile connected devices amounting to a global average of 1.4 mobile devices per capita. Banks need to go where the opportunity is, and that is mobile.