A PwC-commissioned poll of 300 Hong Kong banking customers in the emerging affluent and affluent segments has revealed a high level of dissatisfaction with their current banks – only 14 per cent believe that their bank will listen to their feedback and only 15 per cent of these customers would be willing to recommend their bank to friends and family.  In addition, less than half of those customers who have been provided with a relationship manager by their bank actually know that individual’s name.

The consultancy firm said the figure is based on conservative estimates; banks can obtain such an incremental improvement if they employ the same approach to serving client as is used by new entrants into the financial services industry.

To bolster the idea that banks are missing out on a big revenue gain opportunity, PwC says its global Retail Banking 2020 survey found that 80 per cent of banks is surveyed say they have a problem with customer service but that only 18 per cent are actually doing anything to improve the situation.

The report said that “among the wide range of forces that are being felt within the retail banking industry is the arrival of entirely new players. They bring capabilities that the incumbents don’t possess: they have a flair for innovation and a deep appreciation of the value of data analytics, HK being unhampered by clunky legacy systems”.

“Banks must generate greater value for their customers,” says Peter Li, PwC Hong Kong Banking and Capital Markets Leader. “We are seeing new providers attracting and retaining customers through a superior experience that challenges banks’ traditional focus on products and channels.  This is a tremendous challenge – but the rewards are there if they can overcome it,” Li said.

“Banks are aware that customers are unhappy with existing levels of service and are more willing than ever to go elsewhere,” said James Quinnild, PwC Hong Kong Financial Services Consulting Leader for Asia Pacific.

“What explains banks’ lack of progress is the complexity of the challenge. It is not enough just to enhance channels or products through technology. Banks need to undergo a true transformation in what drives every aspect of their business; as new entrants are bringing innovative cultures, streamlined supporting operations and trusted financial/transactional relationships with customers,” Quinnild said.