3rd Annual Bank Benchmarking study highlights the woes of customers

Ethos Consultancy, the global leaders in implementing customer service excellence, is set to release its annual Service Quality Bank Benchmarking Study.

For the 3rd year running, the independent study promises to be the most comprehensive study of the UAE Retail Banking Sector.

A set pattern of customer service levels for each bank (by using the previous two years data) will be derived from this years study, clearly laying out each banks commitment towards their customers.

The study each year is carried out by trained and experienced researchers who focus on real scenarios whereby a prospective customer approaches a retail bank via three channels: branch, call center or website.

These channels are then evaluated on two key differentiators that define customer experience at a bank: response time and service quality.

The results of this years study are intriguing.

There has been a downward trend in customer service from the majority of banks when it comes to their branch performance.

However, once again RAKBank has outdone their competition by a distance.

In second place is Dubai Islamic Bank, who seem to have overhauled their customer service delivery and focused their strategy around their customers. Their progress has been dynamic to say the least, and is by far the most improved bank in the study. This is a major improvement from last year, where they were in the bottom ten.

Third in position is the National Bank of Dubai, who like Dubai Islamic Bank, have improved immensely from last year.

The best international bank and fourth overall is Lloyds TSB, who have consistently maintained high levels of customer service throughout the years. Within the best Islamic bank category, Dubai Islamic Bank came out on top. It is a credit to all these organisations who have managed to change their strategy and direction, evolving their policies around the most important factor in any business: customers.

To achieve the same level of customer service provided at RAKBank branches, other banks have a long way to go. RAKBank are clearly heading the pack in this regard, and their consistency over the past 3 years is a strong show of commitment towards their customers.

The performances of Customer Service Advisors (CSA) in comparison to the previous studies have reached an all time low. This is indeed a worrying sign for prospective customers as the CSA interaction is the factor that results in the opening of accounts. Teller performances have marginally dropped as well, leaving much to be desired. There is a lack of focus on training employees as well as in process management, both an integral part of improving customer service.

The best call center this year is Dubai Islamic Bank, who have come from last years bottom ten to take the title. They have improved considerably from the previous year with a response rate of less than 1 minute for all calls.

Another notable improvement in call centers is from Standard Chartered.

Coming third in the call center from last years bottom 10, they have revamped their call center by shifting it to India, a first for any bank in the UAE.

The best website response goes to HSBC, who have maintained an excellent response rate to their prospective customers, calling them back within 24 hours and at preferred customer timings.

Philip Forrest, the President of The International Customer Service Institute and Chairman of the UK National Business Awards, has verified the study and emphasis's the benefits of focusing on customer service, 'Organisations that take customer service seriously will not only have to spend less to replace customers they have lost but they will also be free to select the customers that meet their business plans rather than those they need to make up the numbers. The double benefit is that those who pay attention to customer care will find it easier to develop a more profitable and increasingly loyal customer base thereby creating the opportunity to sell more products.'

The rankings for this year provide us with an interesting picture:

Ranking/Bank

1 National Bank of Ras Al Khaimah (RAKBank)
2 Dubai Islamic Bank
3 National Bank of Dubai
4 Lloyds TSB Bank plc
5 HSBC Bank
6 Dubai Bank
7 Emirates Bank International/Me Bank
8 First Gulf Bank
9 Union National Bank
10 National Bank of Abu Dhabi
11 Mashreq Bank
12 Emirates Islamic Bank
13 ABN Amro
14 Commercial Bank International
15 Abu Dhabi Commercial Bank
16 Standard Chartered (SCB)
17 Arab Bank
18 National Bank of Sharjah
19 Citibank
20 Commercial Bank of Dubai
21 Abu Dhabi Islamic Bank
22 Al Masraf (ARBIFT)
23 Barclays
24 Habib Bank A.G Zurich
25 United Arab Bank
26 Bank of Sharjah
27 Bank of Baroda
28 United Bank Limited

In general the industry as a whole has improved but there are a few areas of concern. While call center and website customer service has increased by 20% in comparison to last year, branch customer service levels have declined, with 60% of the banks taking a downward plunge in their branch customer service levels.

National Bank of Abu Dhabi, the UAE's largest bank, has moved down to the 10th position while the much expected arrival of Barclays has been disappointing.

Barclays are to be found in the bottom ten in the overall rankings, with poor customer service levels for their branches (lying in the bottom three in branch rankings).

The bank which has slipped furthest in the rankings is Citibank.

Their customer service levels seem to have plummeted, falling down by 12 positions this year.

Robert Keay, Managing Director of Ethos Consultancy, highlights the changes from last years benchmarking study,

'The lack of improvement in customer service levels for branches is alarming. More than 75% of prospective customers get in touch with a branch first and then move on to other delivery channels. The focus of all banks should primarily be on branches followed by the call center.'

'At the same time it is worth noting the improvements in the other two channels of inquiry. An increase of almost 20% for both, call center and website inquiries, is a positive sign for customers in general, but there is a definite need to up the level for branch customer service levels.'

The Bank Benchmarking Study provides banks an opportunity to get access to precise and up-to-date information from a trustworthy source. The study has become a generic ranking for the banking industry and as each year passes it's becoming a source of highly valuable information.

The Benchmark & Service Quality Study will offer three distinct reports: Executive Summary, Bank Specific Benchmarking Performance Report and Online Access to the Research Input Data.

Ethos Consultancy, with its promise to radically improve customer service, will continue to release the Bank Benchmarking Study annually