More Than Half of Bank Customers Ready to Embrace Virtual Banking, J.D. Power Finds
Citibank Ranks Highest in Hong Kong Retail Banking Customer Satisfaction
With more than half (57%) of customers now ready to embrace virtual banking with their main financial institution, banks need to rethink their strategy in order to meet the changing needs of their customers, according to the inaugural J.D. Power 2018 Hong Kong Retail Banking Satisfaction Study.
Although the study finds that 71% of customers have used online banking (via PC) to interact with their main bank in the last 12 months, only 30% have used mobile banking, which is significantly lower than the 78% in mainland China, 43% in Australia, and 41% in Singapore. Nevertheless, it is clear that customers feel more work is needed to improve the digital user experience, with 35% indicating having experienced a problem accessing their online banking account and 56% having experienced a problem with their mobile banking app.
“Self-service channels such as ATMs, online and mobile banking are generating higher satisfaction than the traditional high-touch channels like branches and call centres,” said Anthony Chiam, Service Industry Practice Leader, at J.D. Power. “It is interesting that despite the shortfall in the digital user experience, customers are still more satisfied using these channels versus traditional channels. They welcome the convenience and 24/7 accessibility and it will be interesting to see how banks build and deepen relationships with their customers going forward.”
The study also finds that 52% of bank customers are frequent users of mobile payment services, i.e. payment for goods and services via mobile phones. This proportion is much higher than the 35% in Singapore and 19% in Australia but is still lagging behind mainland China at 98%.
The following are additional key findings of the study:
- WeChat Pay rated highest in satisfaction among mobile wallets: Of the mobile payment users in Hong Kong, 29% indicated that Apple Pay is their main mobile wallet, followed by Octopus O! ePay at 17%; Android Pay at 16%; Alipay at 15%; and WeChat Pay at 8%. However, WeChat Pay receives the highest satisfaction rating among mobile payment providers (7.7 points on a 10-point scale), followed closely by Apple Pay (7.6).
- Premier bank customers are more satisfied: Overall satisfaction is substantially higher among retail banking customers who have a premier account (702) than among those who do not (667).
- Switching intent from main bank is high: Nearly one-third (32%) of customers are considering switching their main banks, compared with 18% in Singapore and 16% in Australia.
Citibank ranks highest in retail banking customer satisfaction with an overall satisfaction score of 723. Citibank achieves the highest score in five study factors: account activities; account information; product offerings; fees; and facility.
The study measures customer satisfaction with the products and services provided by their primary financial institution. The study measures overall satisfaction in six key factors: account activities (33%); account information (19%); fees (16%); facility (16%); product offerings (12%); and problem resolution (4%).
The 2018 Hong Kong Retail Banking Satisfaction Study is based on responses from 2,371 retail banking customers. The study was fielded between November 2017 and January 2018. J.D. Power conducts a series of retail banking studies across several key financial markets, including Australia, Canada, China, India, Singapore and the United States.