BANKING NEWS
91%financial rewards
of consumers
expect
for loyalty to their banks
media space, which means that banks that are not focusing on
these two aspects may fall behind the curve. Looking at an
analysis done by Ernst & Young on the first half performances of
the three major banks that have already reported, Emilio Pera,
Financial Services Sector Leader for the Africa sub-area, said
that it is unlikely that the bank’s cost to income ratios are going
to get back to the levels it was in 2008. He said that especially
with the demands from customers to offer multiple channels for
interaction and the subsequent IT investment that is necessary,
along with looming costs linked to regulatory changes, these
ratios could remain at levels around 56%. ‘Banks want to contain
their costs, but you could lose market share if you hold back too
long,’ he said.
ABOUT THE SURVEY
This research was conducted between February and March 2012
using an internet questionnaire. A total of 28 560 participants
were surveyed, comprising 13 001 in EMEIA, including 500 in
South Africa; 3 002 in North America, 4 548 in Latin America
and 8009 in Asia-Pacific. ■
To read the full report visit www.ey.com
38
THE BANKER
Edition 3
HOW CAN BANKS REBUILD
CUSTOMER CONFIDENCE?
Encourage customer self service Banks need to improve
the way they provide information and advice to interest and
convince self-directed customers, including financial planning
tools, ranges of product and pricing bundles.
Personalised banking Customers who report a more tailored experience are often most willing to provide their banks
with more frequent updates.
Better value and service Customers are demanding more
control of their relationships and will look around for the most
attractive fees and rates for the level of service provided.
Leverage customer advocacy Banks should embrace the
use of social media as a source of banking information, as
views of online communities and affinity groups become more
influential.