A fifth of banking customers in the UAE are considering terminating their relationship with their main bank, amid widespread dissatisfaction and a host of common grievances, a study by Cashy, a personal finance website, and YouGov Siraj has shown.
High services charges are the most cited reason for people thinking about voting with their feet and taking their business elsewhere, with 47 per cent of respondents saying that is one of the reasons they are now considering leaving their main bank.
A litany of customer service disappointments behind the decision to shift include a lack of importance given to customers (42 per cent), poor response to customer complaints (40 per cent) and a lot of hidden charges and fees (37 per cent).
Whilst 18 per cent of the 2,788 people questioned by YouGov Siraj for the study said they are 'very dissatisfied' or 'dissatisfied' with their main bank, a worrying half of respondents said they would not recommend their bank to a friend or colleague. Just 20 per cent say they would recommend their current bank.
"Banks in the UAE are failing consumers. There is a catalogue of complaints against the companies that provide our current accounts, credit cards and savings products. Consumers are becoming more financially astute and more demanding in what they expect." said Nima Abu-Wardeh, founder of cashy.
The top five grievances people faced when dealing with their main bank in the past year are: delay in answer a phone call (28 per cent); delay in resolving the problem (24 per cent); high service charges and unprofessional customer services (both 22 per cent); hidden charges (19 per cent) and high interest rates on banking services (18 per cent).
"UAE consumers are behaving differently post-recession; it appears to have made them choosier and they're no longer willing to take poor service. They tell us they are prepared to vote with their feet. The survey suggests Banks would do well to focus on really great customer service, which starts and ends with listening," she said.
Dubai Islamic BankDubai Islamic Bank and HSBC Middle EastHSBC Middle East are the two most used banks in the UAE, with 21 per cent of respondents saying they used these banks for some form of financial product or service.
The study also highlighted what people are looking for in a bank. Although 58 per cent said they chose their main bank because it was a company requirement that their salary was transferred into an account with that bank, people would prefer to select their bank based on other criteria.
Credit card providers fared little better than current account providers. More than one-third (38 per cent) of people have cancelled a credit card in the past 12 months. Again, customer service abuses and fees are the reason; high interest rates (40 per cent) and uperfluous charges (37 per cent) being cited as the deciding factor in card cancellation.
'Free for life' option (62 per cent), annual fee waiver (41 per cent) and cashback facility (37 per cent) are the top three features that are most likely to make people switch from one credit card to another.
By Staff
© Emirates 24|7 2010
