Banks admit to losing customers due to poor customer experience

Global banks are losing one in five (20%) of their customers due to poor customer experience, having overlooked what truly matters, according to new research by 10x Banking.

The study commissioned by 10x, the cloud-native SaaS core bank operating system founded by former Barclays CEO Antony Jenkins, revealed that banks in key markets across the globe are shedding large numbers of their customer base to rivals. One in eight banking leaders (12%) state they have lost 30-40 per cent of their existing customers for this very reason.  

Surveying more than 150 senior decision makers and more than 150 product managers, business analysts and project managers, across eight markets (UK, South Africa, the Nordics, Australia, New Zealand Germany, India and Vietnam), 10x’s study sought to understand the decision-making process within the world’s leading banks when it comes to digital transformation, specifically their ability to adopt new technologies, respond to market change, roll out new products, and prioritise resource appropriately.

Not only do senior decision makers within banks recognise they are losing valuable customers, but an alarming two-thirds (64%) admit that their slow rate of digital transformation has directly resulted in them missing out on winning new customers.

Commenting on the findings, Jenkins said: “Over my career I have learnt banking is about customers, but the reality is most of the banking industry has overlooked what matters, taking a product-focused approach rather than focusing on the customer. Banks need to think about solving problems in a way that makes customers’ lives easier. This is a good thing for the bank and the customer, who will be more loyal over time as a result.

“Banks often mistake transformation for innovation. Innovation is a linear series of marginal improvements, whereas true transformation is a non-linear step-change in improvements, beginning with a material improvement in customer experience.”