MUMBAI: Indian banks lag below global average when it comes to customer expectations on performance, scoring on safety but failing in loan processing.
In a global online survey, Performance Against Customer Expectations (PACE) 2016, conducted by FIS, a NYSE-listed banking and payment technology provider, Indian banks ranked 74, falling below the global PACE Index average by 5 points.
The global average being 79 on a score of 100. Indian banks had scored 68 last year.
“Indian banks are doing well on safety parameters but low on fairness. Banks need to clear away obstacles to fulfilling increasing consumer demand for financial help,” said Ramaswamy Venkatachalam, managing director, FIS India.
The study was fielded by market research firm TNS surveying about 10,030 banked consumers in the age group of 18 to 75 across India, United States, United Kingdom, Brazil, Canada, Germany, Australia, Philippines, Poland and Switzerland. Approximately 1,000 surveys were completed in each country.
Of the three countries that scored below average, only Brazil was lower than India at 72. Philippines scored 77. Germany and United States top the ranking at 87 and 86, followed by Switzerland at 83 while Canada and United Kingdom are at 82.
In India, while safety ranks number one in importance, security, fairness, simplicity, reliability and transparency rank further down the list. User-friendliness, innovation and aspirations are now more important, said an FIS statement.
{{/usCountry}}In India, while safety ranks number one in importance, security, fairness, simplicity, reliability and transparency rank further down the list. User-friendliness, innovation and aspirations are now more important, said an FIS statement.
{{/usCountry}}The biggest ‘pain point’ experienced by India’s consumers is slow loan processing, followed by inaccessibility — 40% of the respondents found it difficult to physically visit a branch and finding people who can knowledgeably answer questions of 18-50 year olds.
This is evident as nearly three-fourths of respondents use the internet and 92% of smartphone/ t ablet owners wanted at least one personal financial management benefit that is provided through a mobile application.
Nevertheless, about a third of the surveyed market in India still wants to meet in person with an advisor, significantly lower than the global average of 42%, said FIS.
“Most banking consumers use some form of financial advice tool. They have no forum of financial advice and hence would like to take it from banks itself. Also, this comes from 18-25 year olds — the most valuable consumer,” Venkatachalam added.
The PACE survey polls consumers about their expectations from financial institutions, how they rank the importance of those items, and how well the financial institutions meet those expectations.
It records 18 attributes including safety, security, fairness, financial advice, transparency, aspirations, connectedness and in-person service among others.