Banks Customers are Happy, but Their Loyalty is Fragile

EPAM’s Consumer Banking Report offers insight into the satisfaction of global banking customers. EPAM, a digital transformation services and product engineering company, surveyed 9,000 retail banking consumers across nine countries to learn more about the customer experience. 

Many consumers still like visiting branches and half do so weekly. However, satisfaction doesn’t necessarily equate to unconditional loyalty. Consumers are increasingly concerned about security.

Good customer service = happy customers: Of the 83% of respondents who said they were happy with their banks, the greatest reason was excellent customer service (46%), followed by a strong reputation with the wider public (29%). Approximately a third of respondents who were unhappy with their bank said they would be happier if they offered better customer service.

Banking in the branch: 86% of respondents globally said they used a physical branch in the past year and 45% said they visit a branch at least monthly. When asked why they visited a branch, consumers said it was for help (66%), guidance (68%), complaints (61%), or money management (60%).

Will customers leave? Despite high satisfaction levels, three in ten respondents are considering changing banks in the next year. Half of those said it was for better interest rates or lower fees. Additionally, 38% who were dissatisfied with their current banks said their satisfaction would improve if they offered rewards or incentives.

Personalized experiences and trust: The need for personalized experiences continues to grow. 70% say receiving personalized recommendations and experiences based on their behaviors and needs is important. Consumers also largely trust their banks and 81% said they trust their banks to handle their finances and keep their data safe.

Getting and using data: Banks can start by collecting data to learn more about customer habits, intentions, preferences and unmet needs. While this depends on a customer’s location, it can include financial data they have, financial data they do not have and non-financial data. To provide these human-centered experiences customers crave, banks need to employ AI, genAI and machine learning to generate valuable insights from their data.

Customers want more innovation: Consumers are increasingly digitally engaged with their banks. Nearly a third use their bank’s app daily. However, they also want more. Over the next three years, 64% say they would like their bank to provide them access to a digital banker, while nearly 80% say instant payments are the most important feature their bank could offer.

Consumer hesitancy around AI: While banks are striving to find new applications for GenAI, many customers remain skeptical of AI playing a role in their finances. Slightly more than half (57%) said they would not be comfortable acting on financial advice provided by an AI service. However, 68% of respondents also said they would like their bank to offer better financial education. While consumers could benefit from AI, trust must be built before they embrace it. (Guillot, 2024).