Despite the crushing headlines, new figures have revealed two thirds of consumers feel loyal to their bank/and or building society - although further reading indicates that it is more entrapment than loyalty.
The Logic Group’s annual survey on customer loyalty, which surveyed over 2,000 UK adults, found banks and building societies topped the chart on customer loyalty with 66%, beating off competition from supermarkets (62%), mobile phone network operators (53%) and mobile phone handset manufacturers (33%).
Hotels received the lowest figure for customer loyalty with 12%, said the report.
However, according to The Logic Group, the four annual surveys revealed complicated switch-over processes as the main reason for consumers’ reluctance to switch bank accounts. Given the Office of Fair Trading’s simplification of the switching process, banks must educate their customers and simplify their communications to overcome any notions of hassle and risk, said the firm.
And this could have a radical impact on the loyalty findings the next time they are collated.
Antony Jones, CEO of The Logic Group, believes that it is high time financial institutions were more responsible to their customers.
“The recent events, including those from last week, should become a lesson for British banks in how not to exploit and dishonour customer trust and loyalty," he said. "The repercussions are not just for the protagonists or the industry alone, they erode Brand Britain.
“The Loyalty Report highlights the access to trusting customers that UK banks have. Instead of crushing their confidence, banks should be encouraging this loyal customer base to mobilise the economy and stimulate growth.”