Corporates willing to pay more for better service from banks - Finextra survey

Over two thirds - 68% - of corporates would consider switching banks for better customer service around on-boarding, account maintenance and query handling, a 24% rise on the previous year, according to a survey from Finextra Research and Pegasystems.

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Corporates willing to pay more for better service from banks - Finextra survey

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

The survey of 98 senior professionals from banks and corporates in Europe, Asia and the US built on a similar one conducted last year, which focused on client on-boarding and account opening. This year the research was extended to cover account maintenance, inquiry and request management, corporate customer satisfaction and propensity to switch.

In perhaps the most telling responses, 57% of corporates say they would accept paying higher fees for a Web portal with more sophisticated self-service that allows them to manage their entire portfolio online. Another 46% say they would pay more for consistent service across different regions, channels and lines of business.

Over half - 53% - cite quick turnaround times to requests and inquiries as one reason they would increase doing business with a particular bank.

This message from increasingly demanding and sophisticated corporate clients appears to be getting through to the banking sector. While just 26% of bank respondents in last year's survey said they had invested money in improving and automating on-boarding and service processes in 2009, 64% claim to have done so in 2010, with 84% indicating they have budgeted for investment in this area in 2011.

Download the full free Corporate Customer Satisfaction Survey report here.

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Comments: (3)

Gary Wright 

I wonder how many would actually vote with their feet? Changing banks is a rare action by corporates and consumers alike. Personally i would advocate everyone changing if the service and price is not right. A certain way to shake up a very cosy bank

Bob Lyddon Consultant at Lyddon Consulting Services

A public survey which only had 98 respondents - not all being corporates - can hardly claim that its findings about corporates are authoritative. It would further undermine its authority if any of the respondents turned out either to be in the finance departments of the sponsors or to be participants in the EBAM or E&I services - for which the survey is a market stimulation exercise. Lastly it is hard to assess a statement that "68% of corporates would consider switching banks for better..on-boarding", when on-boarding is itself the process of switching banks. There is a certain circularity about that claim; does it mean that they intend to switch banks for the fun - or rather lack of fun - of it?

A Finextra member 

Just to clarify, the following corporates and banks have responded to this survey:

Heads of treasury from the following corporates (partial list): Aegon, Bayer, Caterpillar, Dell, Dow Chemical, H&M, Heineken, IKEA, NEC, Nestle, Nokia, Porsche and Virgin.

Heads of client service and/or product management from the following banks (partial list): Citi, JPMC, Lloyds, HSBC, Standard Chartered, ANZ, BNY, Barclays, Bank of America, BNP, Caja Madrid, Credit Agricole, Commonwealth bank of Austrlia, Deutsche Bank, ING, Intesa, Nordea, Rabo, RBS, SocGen, Santander and many more... 

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