20th November 2020

Forrester research indicates mutuals and direct banks outperform traditional banks across Europe

According to Forrester, leading European banks increasingly differentiate on customer experience quality, with mutuals and direct banks outperforming traditional banks due to their laser-sharp focus on delivering effective, easy, and emotionally positive experiences to their customers.

Unveiled at CX EMEA this week, Forrester’s European Banking Customer Experience Index (CX Index), which ranks 28 banking brands in the UK, France, Italy, and Spain, also shows that the top emotions that drive loyalty are feeling confident, respected, and valued-with 54% of confident customers planning to stay with their bank, 71% willing to advocate for the brand, and 68% planning to spend more with the brand, directly impacting revenue.

Other key findings include:
-UK, Spanish, and Italian customers find mobile apps the easiest and most effective way to bank. 80% of UK customers, 63% of Italian customers, and 64% of Spanish customers find using a mobile app easy and emotionally positive.
-Customer service is the most important driver category in European banking. In the UK, 62% of customers said they had a positive experience with banks’ customer service, compared to 44% of French customers and 47% of Spanish and Italian customers.
-Disappointment, frustration, and neglect drive European customers away. Of disappointed customers, 19% will stay with a brand, while just 5% will spend more or advocate for the brand.

“Our research proves that exceptional service, confidence, and respect underpin CX differentiation in the banking industry,” said Forrester VP and Research Director Oliwia Berdak. “In Europe, top-scoring mutual and direct banks are resetting customer expectations by building strong emotional connections that make their customers feel valued. When customers have a better experience, they are also more likely to forgive that brand’s missteps. This means that there is huge financial upside for banks that transform their CX.”

Forrester’s 2020 European Banking Customer Experience Index is based on surveys of more than 12,200 European adult customers of 57 brands in the UK, France, Italy, and Spain, including 28 of the largest and most important in banking.

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