Financial services firms alienate customers


Banks and insurance companies in Asia are alienating customers and undermining their prospects for growth through poor customer service, a management consultancy firm said in a published report on Thursday.

More than 24,000 consumers in China, South Korea, Hong Kong, Japan, Australia and Singapore participated in the survey for Bain & Company.

“Among the 10 industries we examined, financial services companies across Asia and Australia ranked near or dead last in customer ratings,” said the report published in The Business Times.

Financial services firms are aggressively courting new customers and then failing to meet their needs.

“Quite often we find that financial institutions in many markets in Asia put a lot of their marketing budgets into acquiring customers,” Bain partner Edmund Lin, one of the report’s co-authors, was quoted as saying.

“To get people to be real advocates of your institution, you often have to invest more in retaining and deepening customer relationships,” he added.

Data from related Bain surveys of financial services firms globally highlighted the discrepancy between how some companies view themselves and what their customers think.

The results showed that of 136 companies in the financial services sector, more than three-quarters believed what they offered was superior to their peers.

Only 6 percent had customers who agreed with that assessment.