JACKSONVILLE, Fla.—A new study shows that globally, consumers rate credit unions and community banks significantly higher than banks for service.
FIS released its first annual Consumer Banking PACE Index, which tracks how financial institutions are performing against customer expectations in nine different countries: the United States, United Kingdom, Brazil, Canada, France, Germany, India, Netherlands and Thailand, using data compiled from more than 9,000 consumers.
The study revealed that community banks and credit unions saw favorable responses for quality of service and in-person experience. CUs, across the word, came in with and Index score just above 90, community banks 85, the top 50 global banks 73, and large and mid-sized banks 71.
Large banks struggled with consumer perceptions around fairness and transparency, lowering the overall index score, FIS said.
Financial institutions in the United States fared better than all other countries except Germany in the survey. However, while U.S. consumers rated their FIs highly for providing in-person service, their perception of security – particularly in the area of protection of personal identities – was lower than many other countries.
While some of the results show the financial services industry meeting or exceeding customer expectations – FIs exceed expectations when it comes to convenience and connectivity, for instance – many of the responses were striking for the opportunities they present for financial institutions, especially as the trust factor continues to be important for consumers, FIS explained.
Worldwide, banked consumers say financial institutions excel at providing digital access and convenience. However, in basic banking areas such as fair and transparent pricing, FIs fall below consumer expectations. In fact, only one in four respondents believes a financial institution meets his or her needs in these basic trust and relationship areas. In addition, the study concludes there is great opportunity for FIs to win consumer support by packaging rewards programs with personalized, customized banking products to meet customer needs.
“This suggests that while the financial industry as a whole is successfully delivering digital access solutions, there are significant opportunities to reset the foundation for consumer relationships,” FIS stated.
“New providers and non-traditional financial institutions continue to make inroads, particularly amongst younger generations, who studies show will soon make up the majority of bank revenues,” said Anthony Jabbour, CEVP, Integrated Financial Solutions, FIS. “With these challengers poised to grab customers, financial institutions have the opportunity to lead with their strengths and re-define advisory services. Consumers value the banking relationship and banks have a significant opportunity to be viewed as more than a vehicle for transactional convenience, but rather a true focal point of consumers’ financial lives.”