cashy study shows:
20% think about voting with feet and leaving main bank
Poor service, hidden charges and high interest rates top three grievances
Almost 40% cancel credit cards amid dissatisfaction
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, the Arab world's first dedicated 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% 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%), poor response to customer complaints (40%) and a lot of hidden charges and fees (37%).
Whilst 18% 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% say they would recommend their current bank.
Nima Abu-Wardeh, founder of cashy, said: "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."
The top five grievances people faced when dealing with their main bank in the past year are: delay in answer a phone call (28%); delay in resolving the problem (24%); high service charges and unprofessional customer services (both 22%); hidden charges (19%) and high interest rates on banking services (18%).
"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.
cashy provides an invaluable resource to consumers in the UAE since it went live in July in both English and Arabic. The website, which is powered by Zeedna - a social media publishing platform developed by Baraka Ventures to support the rapid expansion of online communities - allows consumers to compare credit cards, current accounts and savings products from financial services providers in the Arab world.
Dubai Islamic Bank and HSBC Middle East are the two most used banks in the UAE, with 21% 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% 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.
Nima continued: "For consumers in the UAE it's all about trust and transparency; 70% said it is 'very important' to use a bank they could trust, while 65% want a bank that is transparent in its dealings; the worrying thing is that consumers find these traits so hard to find."
Credit card providers fared little better than current account providers. More than one-third (38%) 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%) and superfluous charges (37%) being cited as the deciding factor in card cancellation.
'Free for life' option (62%), annual fee waiver (41%) and cashback facility (37%) are the top three features that are most likely to make people switch from one credit card to another.
The study looked into other areas, including loans and Islamic banking.
-Ends-
YouGov Siraj interviewed 2,788 people in the UAE between 7th April, 2010 and 2nd May, 2010.
www.cashy.me:
The cashy community has the ability to ask a panel of experts questions about their personal finances, and users can try to help each other by adding their own answers. The site also features independent editorial aimed at helping consumers take control of their financial future, contributed by a panel of journalists and experts.
The full study is appended. You can also access at the bottom of this cashy news article.
Biography
Nima Abu-Wardeh
Nima is a bilingual English Arabic broadcast journalist specialising in Arab issues. She presents BBC World's weekly business and finance programme, Middle East Business Report (MEBR) and was part of the team that set up the programme. She has also reported, produced and presented programmes for Al Jazeera and Dubai's Business Channel. Before joining MEBR, Nima was a regular guest on BBC Radio 4's Four Corners addressing Arab issues, and a guest on BBC World's Dateline London as a regional expert.
Nima is regarded as an opinion leader and is approached by think-tanks, the corporate world and government organisations for her insight. She has written opinion pieces for Forbes Arabia and has taught media courses at Zayed University in the UAE as a visiting lecturer. Nima regularly chairs, and is a speaker at, regional and global gatherings, notably the World Economic Forum and the Arab Business Council meetings, as well as other events.
She is keen to encourage talent and the region's youth and has helped create competitions that serve this purpose, such as the Scintilla Monaco poetry competition. Nima is also keen to promote Arab culture, identity and unity. She has been a member of the Arab Thought Foundation's Advisory Committee as well as a board member of the World Congress for History Producers. Nima has received awards for excellence from regional businesses and communities. A recent achievement was winning the first Oxford Alumni debate to be held in this region, in June 2009. Nima is a Young Arab Leader.
Media enquiries
For further details, or to arrange an interview, contact:-
Nima Abu-Wardeh
Founder and chief executive
cashy
nima@cashy.me
or
Rebecca@cashy.me
© Press Release 2010
