HSBC, Stanchart, Citi top charts in customer experience: Kantar report

Banking in India is known for its rather Kafkaesque spin on regular everyday operations. Even a simple account opening or closing experience can turn into a chain of meaningless tasks and, as needs get more complex, matters get progressively bizarre. Add to this the insouciant and obtuse nature of relationship management that most banks encourage and customer experiences could easily fill up a book of horrors. In this context, a survey and ranking of the retail banks on the basis of customer experiences in India released by Kantar today throws up interesting insights and also reflects the huge gap between reality and perception that exists in the sector.

The majority of the banks surveyed for this study said that the customer is central to their world, they tailor products and experiences around her needs. But talk to the customers and a different story emerges. While 91 per cent of retail bank CEOs believe that customer-centricity is essential for business growth, but only 29 per cent consumers rate their bank as truly customer centric, the report said.

Preeti Reddy, CEO-South Asia, Insights Division, Kantar said: “We live in the age of experience, but many brands are still missing the mark as there’s a huge gap between promise and customer experience.” 

In fact the gap is visible even if when looks at the advertising narratives adopted by banks. Everyone says that the customer is king, but this is far from reality, as is evident from the Reserve Bank of India’s report on banking ombudsman (2017-18). It says more people are complaining about banking services than before even as the RBI claims to have increased its efficiency in resolving plaints. The 21 offices of the banking ombudsman received 163,590 complaints in FY18, marking an increase of 24.9 per cent over the previous year. Most of the complaints were against public sector banks including State Bank of India. The major complaints were about non-observance of fair practices code (22.1 per cent), automated teller machine and debit card issues (15.1 per cent), credit card issues (7.7 per cent), failure to meet commitments (6.8 per cent), mobile and electronic banking (5.2 per cent).

All of this should be ample evidence that banks cannot afford to stick with business as usual. Piyali Konar, executive VP, CX Domain Expert, South Asia, Kantar said that as more small banks step into the arena, they must note the needs of new customers instead of mimicking the big brands. “They have a brand promise for a different target segment and should live up to that. Holistic personalisation along with digital adoption is the key mantra,” she says.

What do customers truly want? The report says they look for more personalised experiences, smoother and more convenient digital services, and a human approach to technology. There is a widespread perception among Indian citizens that both state-owned and private institutions are not doing enough to serve them.

Konar points to a few examples that have worked well. “HDFC Bank’s 10 second personal loans, ICICI Bank’s paperless sanctioning of home and auto loans combine an innovative application of technology with a customer-first outcome,” she says.

 

Experience matters

• 91% of retail bank CEOs believe that customer-centricity is essential for business growth. But only 29% consumers rate their bank as truly customer centric 
• The power of online banking is on the rise, 80% of transactions in India are made via  digital channels
• Indian consumers are not as worried about data privacy. 
• They are more willing than most to share their data with banks, in return they want value-adding services and more personalised banking experiences