According to European customer care software firm Odigo, excellent customer service is actually the primary factor keeping about 40% of UK consumers loyal to their existing banking provider. Research also showed that 47% of respondents realized they lose out on better financial service agreements by staying with their current bank, underscoring the significance of feeling appreciated by their bank.

According to the research, 19.4 million adults in the UK believe that receiving excellent customer service is at least as important as saving money, even in the face of continued financial restrictions.


This coincides with the recent assertion made by consumer advocate and financial expert Martin Lewis that everybody with a bank account runs the risk of losing almost £200 if they wait to switch. However, according to Odigo study, 35% of customers think they make money by sticking with their present provider, and 40% of customers identify great reputation and trust as additional important factors in choosing to stick with their banks.

On the other hand, 35.7% of customers cited unsatisfactory customer service as one of the main causes for switching suppliers. Better interest rates were cited by about 37.4% of respondents as a reason to stay.

"Excellent client service remains paramount."
 

Chief customer success officer at Odigo Vincent Lascoux shared his thoughts on the results, saying, "The research has spoken: good customer service is still king when it comes to retention, despite the financial challenges and difficulties faced by consumers."

"While financial incentives like cash rewards and higher savings rates should be used by banks to entice customers to switch, this should not be the price paid for a satisfying experience for their current clientele."
 

Banks cannot afford to let the caliber of their customer service to decline as they remain committed to digitally modernizing their products and procedures. Rather, to make sure they are fulfilling client expectations, businesses should consider investing in platforms like chatbots, website upgrades, and social media responsiveness.

As challenger banks like Monzo and Starling Bank rise to the top of Which? and the Competition and Markets Authority (CMA) customer satisfaction surveys, incumbent banks must make more investments in customer service.