Web Banking Remains Key Ingredient of Customer Satisfaction, Reports CFI Group

Research also uncovers growing importance of information and effective communications as key drivers of satisfaction

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Aug 05, 2014, 10:00 ET

ANN ARBOR, Mich., Aug. 5, 2014 /PRNewswire/ -- CFI Group released the findings of the firm's second installment of its Bank Satisfaction Barometer, revealing that overall customer satisfaction within the banking industry is up one point from 79 to 80 since 2013. This point increase validates banks' relationships with customers are improving, boosted by two vital drivers of customer satisfaction – online and mobile banking and effective communication.

CFI Group Bank Satisfaction Barometer (PRNewsFoto/CFI Group)

The research illustrates that customers' relationships with their banks are changing: Only 37 percent of customers are visiting a branch more than once a month and 31 percent are using the branch less often than three years ago. At the same time, the influence of online and mobile on satisfaction has increased 27 percent since 2013.

While many customers are not using a bank's physical location as often, location still remains critical to customer acquisition, as the branch location is the number one reason customers choose their bank. Banks need to maintain their physical presence while continuing to develop and integrate mobile and online capabilities, as satisfaction is driven through all channels.

"Creating a balance of investment among branches, online, mobile and ATM is crucial to satisfying customers today," said Terry Redding, vice president of sales and marketing at CFI Group. "Having one of those options is simply not enough. Financial institutions that do not show their customers they are able to assist them with their needs virtually or in-branch will result in customers being inclined to taking their banking needs elsewhere."

As industry regulations make it harder to attract new customers with innovative products, competitive rates and lower fees, banks need to identify new points of differentiation from the competition. The 2014 Bank Satisfaction Barometer found that the Information and Communications category is one of the drivers with the highest degree of influence on satisfaction, supporting customers' strong desire for proactive, timely and targeted information. Financial institutions that provide the right message at the right time for their customers to make educated financial decisions will have a key competitive advantage.

While customers are still choosing banks primarily based on proximity to branch locations, web-based banking has emerged as one of the most critical levers of customer satisfaction. Banks looking to separate themselves from the competition should consider:

Location, location, location: Of the respondents, 68 percent stated that their closest bank branch was no further than three miles from their home.
Digital adoption is growing: The top three banking activities performed remotely are checking account balances, paying bills and transferring money.
Age is just a number: Customers of all ages have made web-based banking a way of life – 86 percent of those between 18-49 are doing at least half of their banking remotely, and 76 percent of those between 50 and over are doing so.

To obtain a copy of the 2014 Bank Satisfaction Barometer and to learn more on what customers are looking for in their banking experience and from their financial institutions, visit http://www.cfigroup.com.

About CFI Group (www.cfigroup.com)
CFI Group is a global leader in providing customer feedback insights through analytics. CFI Group provides a technology platform that leverages the science of the American Customer Satisfaction Index (ACSI). This platform continuously measures the customer experience across multiple channels, benchmarks performance, and prioritizes improvements for maximum impact.

Founded in 1988 and headquartered in Ann Arbor, Mich., CFI Group serves global clients from a network of offices worldwide. Clients span a variety of industries, including financial services, hospitality, manufacturing, telecom, retail and government.

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SOURCE CFI Group