LONDON--(BUSINESS WIRE)--Customer satisfaction with retail banking increased slightly in 2011, according to the National Customer Satisfaction Index (NCSI-UK), produced in partnership with the American Customer Satisfaction Index (ACSI) and CFI Group. Some of the big banks have improved customer satisfaction this year, but still trail behind smaller banks and building societies.
“Smaller institutions and new entrants haven’t been able to compete with the big banks in the past, but the current climate may be creating a perfect storm,” said James Rudd, MD of CFI Group UK. “Calls for increased competition have grown louder, and there is a push to make switching easier. And with recent moves from Virgin Money, the Co-operative and Metro Bank, big banks are facing new rivals whose foundations are built upon customer relationships.”
Personalised service and highly satisfied customers make smaller banks and building societies an attractive alternative for consumers. The United States has recently seen a large migration of customers from large banks to smaller institutions and credit unions, and the United Kingdom appears poised for a similar experience.
Big banks may be forced to improve customer satisfaction in order to hold on to their customers, but there are serious implications for smaller banks as well. With an influx of new customers, smaller institutions – whose size has allowed their service advantage – may struggle to maintain service levels. The challenge now for all banks will be how best to provide and maintain a higher level of customer service than the competition.
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About NCSI-UK (http://www.ncsiuk.com)
The National Customer Satisfaction Index applies the technology and methodology of CFI Group and the American Customer Satisfaction Index (ACSI). Indices are reported on a 0 to 100 scale. The causal model determines which drivers of satisfaction, if improved, would have the most effect on customer loyalty and profitability. This methodology was developed at the University of Michigan and has been adopted worldwide as a leading macro- and micro-level indicator by universities, governments, and countries including the United States (www.theacsi.org), the United Kingdom, Sweden, Singapore, Korea, Turkey, South Africa, Mexico, Colombia, Dominican Republic, Indonesia, and Barbados. As a financial indicator, ACSI data have proven to predict corporate revenue and earnings growth, stock market performance, consumer spending and GDP.