Banking Consumers Want Good CX as Much as £200 Switch Deal

More than 40% of UK consumers cite good customer experience as the reason they stay with their banking provider, despite 47%* believing they miss out on better financial service deals by not switching.

The findings – commissioned by customer service software provider Odigo and executed by Censuswide – show that amid ongoing financial constraints, 19.4** million UK adults consider good customer service  equally as important as financial savings.

This comes as financial expert and consumer champion Martin Lewis recently claimed that anyone with a bank account risks losing around £200 by not switching now.

Yet, the research shows that 35% of consumers believe they don’t lose money by staying with their current provider – alluding to a widening gap in consumer perception.

40% of consumers also cite strong reputation and trust as another key reason to stay with their banks.

Vincent Lascoux, Chief Customer Success Officer at Odigo, comments: “The research has spoken – despite the financial challenges and difficulties faced by consumers, good customer service is still king when it comes to retention.

“Whilst banking providers should continue using financial benefits, such as cash incentives and better saving rates, to encourage customers to switch, as part of their strategy, this must not come at the expense of a positive experience for their existing customers.”

As banks continue to focus on digitally innovating their offerings and processes, they cannot afford to let the quality of their customer service drop. Instead, they must look at investing in platforms such as chatbots, website updates, and social media reactivity to ensure they are meeting customer expectations.

Investing in customer service is especially important for incumbent banks that are facing increased competition from challengers, such as Monzo and Starling Bank, who ranked at the top of the Competition and Markets Authority (CMA) and Which? customer satisfaction rankings.

The research further shows that poor customer experience is named as one of the top reasons to swap providers by 35.7% of consumers. Whilst 37.4% named better interest rates as a reason to stay.

Despite nearly half believing they could get better deals elsewhere, 67% are satisfied with their current service provider.

The importance of maintaining a high level of customer service and positive customer experience is vital. Understanding customers’ expectations is crucial in continuing lasting loyal relationships.

* With a consumer survey sample of 2000, 34.65% believe they are not losing out on money by not switching and 18.25% prefer not to say. 100%-(34.65%+18.25%)= 47.1

** According to ONS’ 2021 Census, there are 53.2 million (53,188,204) adults in the UK, with 41.1% of this being 19.4 million

For more information about Odigo - visit the Odigo Website

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