Report reveals customer satisfaction with banks remains largely unchanged over the past five years
A vast majority, or 92%, of Australians expect banks to assist customers in financial distress proactively, while 98% demand support against financial scams.
A recent report that surveyed over 5,000 Australians has revealed that their satisfaction with banks remains largely unchanged despite significant improvements in the banking industry since the Royal Commission recommendations of 2019.
According to the Publicis Sapient 2024 Customer Banking Report, while 74% call for more personalised banking services, a significant 70% also feel their relationship with their banks has not evolved.
Interestingly, most customers prefer these personalised interactions to occur in physical bank branches rather than through digital channels, even as banks continue to reduce their physical presence.
The role of artificial intelligence (AI) in enhancing customer service is recognised, yet only 58% believe AI will improve service levels. The report uncovers widespread concern about AI usage, with apprehensions about job losses, data privacy, and a preference for human interaction.
“Australian banking is at a crossroads, where the ability to adapt, innovate and deliver a seamless customer experience will determine the market leaders of tomorrow,” said Tales Sian Lopes, (pictured) head of financial services for Australia and New Zealand at Publicis Sapient.
“All consumers want is the basics done brilliantly, but with customers associating this with branches at a time when most banks are cutting their physical footprint – data and digital experience are the battleground of the future.”
Despite improvements post-Royal Commission, over half of the respondents see no change in bank operations, although 83% recognise some positive traits in their banks.
The reluctance to eliminate physical branches and cash services shows strong customer attachment to traditional banking methods, with 72% having visited a branch in the last six months.
Security also remains a significant concern, with 83% confident in their bank’s scam prevention measures. However, the response to scam incidents is less satisfactory, with only 58% finding banks helpful post-incident.
The report also identifies a strong demand for financial wellbeing support amid rising living costs, with 79% of Australians needing proactive help from their banks. Furthermore, there is a notable shift towards socially responsible banking, particularly among the younger population, with 75% favouring banks committed to green initiatives.
“For Australian banks, enhancing accountability and trust while demonstrating societal benefit is now more critical for customer retention,” Lopes said. “With the cost-of-living crisis impacting Australians’ financial wellbeing, banks would do well to build a comprehensive toolkit of financial wellbeing intervention techniques, which they can deploy proactively when the data suggests customers are at risk of falling into financial stress.
“At the same time, younger Australians are also more discerning about social responsibility. Banks should be thinking beyond existing products and business models towards social and environmental options as a long-term growth strategy.”
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