GTM-TCJ63LT
Skip to main content
  1. Home >
  2. About Fujitsu >
  3. Resource Centre >
  4. Press releases >
  5. 2007 >
  6. 80% of bank customers would consider switching; poor service number one frustration according to Fujitsu Consulting survey

80% of bank customers would consider switching; poor service number one frustration according to Fujitsu Consulting survey

Fujitsu Australia Limited

Sydney, August 28, 2007

In a survey of more than 26,000 retail bank customers, launched today by Fujitsu Consulting, 80 per cent of respondents said they would consider switching financial service providers. In the report, entitled ‘Toxic servicing: eroding profitability in the financial services sector’, poor servicing (31 per cent) ranked as the number one frustration among financial services customers, three times greater than the next biggest frustration, which is complex terms and conditions (10 per cent).

Martin North, managing consulting director, Fujitsu Australia and New Zealand said, “Contrary to what many financial services businesses assume, price is not the primary driver of customer churn. Our research shows that, in reality, poor service is the number one ‘toxic’ issue driving customer churn in the financial services industry. Despite significant inertia, customers who are exposed to toxic servicing are highly likely to switch providers.”

Examples of toxic servicing include being passed around in a call centre, having the phone put down on them, poor product knowledge amongst branch staff and hidden fees and charges.

As a result of these issues, 80 per cent of survey respondents said they would consider switching banks. While 26 per cent said they would switch to find a better rate, 23 per cent are looking for better service, followed by a better product (19 per cent), more loyalty rewards (17 per cent) and if banks made it easier to switch (six per cent).

“With increased pressure on profitability, banks have been powering up their sales channels to grow market share. However, as a result, the cost of attracting new customers in Australia has jumped by more than two-thirds over the past five years, now totaling between $500 and $800 per customer acquisition. This compares with just $100 to cross-sell to an existing customer,” said Martin North.

“With customer churn at an all time high (averaging 25 per cent per annum), banks must focus on retaining customers, particularly the most profitable ones. Financial services providers must deal with ‘toxic servicing’ issues as a matter of urgency,” said Martin North.

Fujitsu Australia and New Zealand

Fujitsu is a full service provider of information technology and communications solutions. Throughout Australia and New Zealand we partner with our customers to consult, design, build, operate and support business solutions. From strategic consulting to application and infrastructure solutions and services, Fujitsu has earned a reputation as the single supplier of choice for leading corporate and government organisations. Fujitsu Australia Limited is a wholly owned subsidiary of Fujitsu Limited of Japan. For more information, please see: www.fujitsu.com

About Fujitsu Limited

Fujitsu is a leading provider of customer-focused IT and communications solutions for the global marketplace. Pace-setting device technologies, highly reliable computing and communications products, and a worldwide corps of systems and services experts uniquely position Fujitsu to deliver comprehensive solutions that open up infinite possibilities for its customers' success. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 5.1 trillion yen (US$43.2 billion) for the fiscal year ended March 31, 2007.
For more information, please see: www.fujitsu.com

Elizabeth Greene

Phone: Phone: +61 2 9113 9252
Mobile: Mobile: +61 433 135 681
E-mail: E-mail: elizabeth.greene@au.fujitsu.com
Company:Fujitsu Australia and New Zealand Limited

Date: 28 August, 2007
City: Sydney
Company: Fujitsu Australia Limited