U.S. - A Global Leader in Retail Bank Performance

The study, “Striving for growth: Best practices in retail banking sales and service channels,” reveals that the majority of banks worldwide are failing to meet many customer needs and get the best performance from sales channels such as call centers and websites. The comprehensive study, which used customer research and mystery shopping to assess 100 banks across 17 countries, looked at what customers want from their banks, how banks are performing, and best practices to drive profitable growth.

While retail banks have recently made strides in key customer service areas, such as simplified account opening processes and more robust online and phone access, the consumer survey findings show that banks are missing sales and relationship building opportunities, both in the U.S. and globally. In particular, most banks do not adequately provide differentiated service offerings for the mass affluent and other segments of the consumer market.

Globally, consumers prefer banking in branches, but more North American consumers are choosing alternative channels. Sixty-three percent of customers worldwide purchase savings account products through a branch, compared with only 46% of those in North America; 54% of global customers purchase mortgages in their branch, while only 35% of North American consumers do so. For less complex products, such as credit cards, over half of customers globally, and nearly three-fourths in North America, would shop either online or over the phone, with most preferring online shopping. Affluent consumers overall are 30% more likely to prefer using online services over other channels.

“The current banking sales approach is highly reactive and largely transactional. Banks need to sharpen their focus on specific segments of the consumer market, particularly the growing mass affluent market, where they can build relationships and cross-sell the products that clients need,” said Paul Hyde, Booz Allen Vice President. “The best banks are providing dedicated staff and floors in their branches for affluent clients, along with separate call center facilities, and premier websites.

“In addition, many banks are missing an enormous opportunity to grow through the Internet and call centers, because the performance of these channels does not yet meet customer needs and expectations,” Hyde noted.