Poor customer service comes a close second in issues customers have with their banks
A majority of UAE customers are unhappy about high bank fees and charges and about banks not being transparent about them, according to an online survey conducted by Emirates24|7.
A survey of more than 1,200 bank customers who responded to this website's poll question last week revealed that more than two in five (41 per cent) of us see banks' high fees and charges coupled with a non-disclosure of the same to prospective customers as the biggest issue we have with our banks in the country.
Even though many banks in the country have tightened requirements for fees and charges following the UAE Central Bank's recent new norms, the report shows customers remain unhappy with them, with another 12 per cent citing lack of communication on interest rates as their biggest grouse with their banks.
Recent new rules recently passed by the UAE Central Bank limit many of the commissions and charges consumers in the country have had to pay until now, including the costs for opening an account and getting an ATM card, which will now be free.
The new rules were the result of a financial review by the central bank following endless complaints, inadequate customer service surveys and frustrated customers. As the Emirates247.com poll shows, customers are most aggrieved by the unnecessary, unjust and additional processing and service fees that have slowly emptied the pockets of many unknowing customers.
The Dubai Chamber, an industry body, believes that these rules will ease the burden on customers in the process of paying back their loans by reduced interest rates and cancellation of 'late charges' in the long term.
"Such a step will put more money back in a customer's pocket to spend elsewhere, which is good for the economy and the business community in general," the body had then said in a statement.
Earlier surveys have shown that more than 20 per cent of frustrated bank customers in the UAE are seriously considering changing banks and over 40 per cent wish to cancel their credit cards due to high and hidden charges.
Unsurprisingly, poor customer service too features as one of the biggest issues customers in the country have with their banks, with more than one in three customers (35 per cent) voicing their dissatisfaction and citing poor service level as their biggest concern in their relationship with their lenders.
Ethos Consultancy's 6th Annual Bank Benchmarking Index for the UAE, published earlier this year, revealed that while eight banks actually improved their standing from last year, 11 lost ground in performance, reflecting the plight of the country's consumers, who are at the proverbial receiving end of the declining service.
"A significant number of the country's leading banks are not providing the level of service as those of their competitors and this will ultimately impact on their bottom line. This shortfall in the quality of service needs to be addressed," Robert Keay, Managing Director of Ethos Consultancy, told reporters in an earlier conference. Most banks in the country fail to respond to a customer enquiry in a timely manner and, at times, also fail to contact the prospective customer, the Ethos survey showed.
Interestingly, pesky promotions are the least of consumers' concerns, the Emirates247.com survey showed, with just 4 per cent of respondents mentioning that as their most pressing issue with their bank. In a silver lining for the banks, 9 per cent of customers said they had no issue with their bank and were satisfied with the service.
© Emirates 24|7 2011
