By: Joe Gillen
Banks and credit unions are seeking to provide a more pleasant and personal customer experience to their patrons following the results of several customer satisfaction studies that show many institutions are missing the mark.
Some banks are adopting traditional measures, such as training staff on professionalism and encouraging them to be as helpful as possible, while others are getting more creative in offering prizes, reward programs and other advantages for customers. The results of the 2013 Temkin Experience Ratings show that many of these measures have paid off, and banks are seeing higher levels of customer satisfaction and sentiment. The analysis measures three primary categories to gauge a positive customer experience.
The first is functional - meaning that consumers have the freedom to manage their accounts effectively. The second is accessibility, and relates to how easily customers can work with their provider. Last, the company measures emotional factors, which explores how customers feel about their interactions.
The study found that large banks saw their Temkin Experience Rating increase to 68.6 percent in 2013, up from 62 percent in 2011. However, credit unions received the strongest ratings from the Temkin Group, indicating that smaller and local institutions still have a competitive edge over national Wall Street banks.
Credit unions come out on top
The Temkin Group gave credit unions at a rating of 79 percent, and were the only financial institutions to receive an "excellent" title. Of the 16 large banks included in the study, eight of these institutions received "okay" ratings, while three banks - Citibank, Bank of America, and HSBC - received "poor" titles.
"The bottom line is that some big banks are heading in the wrong direction," said Bruce Temkin, principal author of the study.
Credit unions have made sizable gains in recent years as a result of the positive experiences they provide to members. Membership and enrollment rates have increased significantly and assets have reached record levels. In addition, credit unions have remained a fierce competitor to their larger counterparts when it comes to developing new technologies, such as mobile banking and chip-and-PIN debit cards. Many analysts agree that credit unions ability to develop personal relationships with members while still offering all of the large amenities of a big bank is a winning combination that will help them remain profitable in the coming years.