Close

Choose a country

United KingdomEnglish
South AfricaEnglish
IndiaEnglish
InternationalEnglish

Creating loyalty in bank customers

Blog
19th July 2017

From 2013 to 2017, just five per cent of retail bank customers in the UK switched from one bank to another. Inertia and a fear of bills being missed all conspire to create a situation in which the banks don’t need to worry much about customer loyalty because very few customers ever change their bank. But is this all about to change?

2018 looks like it could be a critical year because it’s when the PSD2 European Union directive will need to be applied across Europe – and this will still affect the UK as the earliest the UK can possibly leave the EU is 2019. The Brexit process does not impact directives that become law next year.

PSD2 is the second payment services directive. In short, it places a legal requirement on all financial companies to open their data to other companies, creating a digitally-enabled banking environment.

The immediate implications might be that it will be easier to keep control of your money regardless of where it is. You might have your current account with one bank, savings in a building society, and your mortgage with another provider. With PSD2 in place, it is likely that new apps will be launched allowing easy access to all your financial institutions so you can create a simple overall financial picture – and plan for the future more effectively.

But this openness also creates more opportunities for completely new financial service providers – the entire financial system across all of Europe will be open to new providers launching services on apps that rival those the banks are offering. But, more transparency and ease of access to information on accounts also makes it easier to switch. Banks in the UK have tried to make switching easier, but with the ability for a customer to connect a new bank directly into their existing bank, the switching process could (in theory) become immediate.

Just imagine that. Hassle-free instant switching from one bank to another? Suddenly, the customer experience and how to create customer loyalty is going to be a number one priority in the banking industry. But with such an important change coming soon, have you felt a sense of urgency in retail banking yet? In this paper, read how regulation and digital technology will reshape the retail banking customer experience. Let me know what you think by leaving a comment here or get in touch directly via LinkedIn.


Helen Murray
Article by: Helen Murray

News & Insights

Webhelp Payment Services
Solution Designer
Service Provider
Technology Enabler
News
Business Director, Jodie Smith interviewed by Insider Media

Webhelp UK Group Business Director, Jodie Smith was featured by Insider Media in their Northern Powerhouse series - where she outlined what the initiative means to her, how to make the North an attractive place to work and build a business, and the importance of investment to ensure all regions can contribute to the UK's Covid-19 recovery. The Northern Powerhouse has the goal of boosting...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
Blog
Meet our Advisors – Cédric from Madagascar (ep.4)

​During the COVID-19 situation, a client was looking for a direct flight to Africa, desperate to leave before the borders closed. Unfortunately, her flight got cancelled three times in a row. So I had to search a lot of internal flights to help her. Finally, after an extensive search I...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
News
78% of directors believe customers are paying more attention to responsible business practices since pandemic

New research from Gobeyond Partners, the consulting firm focused on customer journey transformation, and Webhelp, Europe’s leading provider of outsourced customer engagement services, has today revealed that responsibility, transparency and trust are now perceived to be more important than they...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
Whitepaper
Whitepaper: Reimagining service for the new world

A framework for tomorrow’s successful customer-focused operating models As the urgency for change and transformation intensifies in the post COVID landscape, some pivotal questions will be raised: How different will service look and feel in the future? How will businesses and their operations...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
Case Studies
Flexible customer service in fashion

...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
×

Webhelp Cookies Preference Centre

Strictly Necessary Cookies
The website requires the use of cookies for essential functional requirements and these are outlined in the cookies policy.

Enhanced Functional Cookies
Some features of this website use services provided by third parties websites. These features use cookies to implement their services on this website and may collect data about your visit to help them optimize their functionality. The Webhelp cookies policy outlines the cookies used by these services.

We have links to social networking such as Twitter, Facebook and LinkedIn.
These websites are third party sites. We do not place cookies on their behalf, and do not have control over the way they collect or use your data.
We encourage you to read more about their policies:
Twitter
LinkedIn
Facebook