When it comes customer satisfaction, Canadians give low marks to the financial services industry as a whole, but rank credit unions higher than big banks on the delivery of key relationship drivers. That’s according to a new survey by Acumen Research Group.

The survey, ConsumerEyes 2002 Financial Services Report, is based on over 2,000 recent interviews with banking customers nationwide. It finds that 35% of the study’s respondents believed that they are “Only as important as the size of their bank account”. As well, 25% of respondents disagreed with the statement that their bank “Values their business.” And 27% of the respondents said they would leave their current financial provider if not for the hassles of switching banks.

Nearly 40% of big bank customers feel “They are only as important as the size of their bank account” compared to 15% of credit union customers. Twenty-five per cent of big bank customers disagreed with the statement that their bank “Values their business,” and 29% would leave their current bank if it were easy to do so. For the same questions, credit unions clocked in at 4% and 13% respectively.

“If almost 30% of my customers admitted they would abandon their relationship with me in a heartbeat, I’d be plenty worried about my company’s future,” says Rod Skinkle, president Acumen Research. “Our findings contain a definite wake-up call to the financial sector. This is a story about vulnerability. It’s about the big banks’ abilities to defend market share against the increasingly aggressive credit unions and alternative service-style banks that rate higher on the all-important relationship drivers.”

Among some of the widest gaps between credit unions and banks are the customer performance ratings for the ability to deliver the lowest service fees and highest interest rates. In the area of service fees, respondents awarded credit unions a score of 72, while banks averaged 56 on a 100-point rating system. And, when it comes to earning money on their money, credit unions received a mark of 70 for the interest rates they offer, and big banks a 59.

On the relationship side, the complaints department surfaces as another area of concern for the industry, particularly big banks. According to the survey, about 25% of surveyed credit union customers reported experiencing either a complaint or a problem over the past year, but that number jumps to almost 40% among big bank customers. Across the industry, 30% of respondents reported being “Not at All” or “Very Little” satisfied with the process of problem solving, and 22% were just “Somewhat” satisfied.

http://www.newswire.ca/releases/June2002/26/c0202.html