2021
9
UK Customer Service Preferences in Financial Services Market Report 2021
2021-06-02T04:02:56+01:00
OX1050269
2195
139109
[{"name":"Financial Services","url":"https:\/\/store.mintel.com\/industries\/finance\/financial-services"}]
Report
en_GB
“The pandemic has accelerated the shift towards digital channels across the financial services sector. This offers cost-effective opportunities to expand the scope and reach of online customer service, but it…

UK Customer Service Preferences in Financial Services Market Report 2021

£ 2,195 (Excl.Tax)

Description

The UK Customer Service Preferences In Financial Services report identifies consumer attitudes towards channel preferences, customer service and consumer behaviour in the UK. The Market report covers the market size, market forecast, market segmentation and industry trends for the Financial Services Market in the UK. 

Current Market Landscape 

Financial services providers have gained a unique insight into the consumer impact of COVID-19 due to their role in supporting household finances during the pandemic. Although it is clear that the pandemic has accelerated the shift to digital channels, it has also highlighted the importance of local communities and of supporting vulnerable people.

  • 72% of customers believe that COVID-19 can no longer be used as an excuse for poor customer service.
  • 42% of all customers have acted on poor customer service in the last three years.
  • 13% say offering extra support for such customers is a top 3 factor in determining good customer service from a provider.

Although part of a long-term trend, lockdowns have accelerated the shift to digital and online channels in customer service. This is likely to continue and expand into further areas of consumer finance, as well as increase the relative value of a physical presence and in-person support.

Future Market Trends in Financial Services

The long-term shift towards online platforms will see cost-effective ways of improving customer service, particularly when it comes to 24/7 assistance and speed of response. However, knowledgeable staff remains the main priority in customer service, and consumers will turn to telephone and in-person services when a serious issue arises.

Innovation in customer services for finance could see a hybrid approach prioritising the time and training of expert staff with automated solutions that can direct customers to the right channels for their needs. This will be key in meeting customers’ expectations now and in the future.

Read on to discover more details or take a look at all of our UK Financial Services market research.

Quickly understand

  • The impact of COVID-19 on consumer behaviours related to customer service.
  • Market environment, including recent regulatory intervention.
  • Perceptions of the customer service offered by different financial services sectors and comparable industries.
  • Most important factors determining good customer service.
  • Channel preferences in customer service for serious vs routine issues.
  • Reactions to poor customer service.
  • Attitudes towards customer service, including developments seen during the pandemic.

Covered in this report

Brands: Monzo, First Direct, Starling Bank, Metro Bank, Nationwide, Barclays, Lloyds Bank, Halifax, Bank of Scotland, NatWest, HSBC, Santander, Co-operative Bank, Virgin Money, TSB, Tesco Bank.

Expert analysis from a specialist in the field

This report, written by XXXXXXXXXX, a leading analyst in the XXXXXXXX sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The pandemic has accelerated the shift towards digital channels across the financial services sector. This offers cost-effective opportunities to expand the scope and reach of online customer service, but it also increases the relative value of human interactions. Knowledgeable staff remains the main priority in customer service, and consumers prefer traditional channels when a serious issue arises. Providers must strike the right balance by leveraging the advantages of digital services in terms of speed, accessibility and coverage, while prioritising the time of expert staff for situations when the human touch is needed to turn a negative into a positive.
Irene Salazar - Financial Research AnalystIrene Salazar
Senior Financial Services Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • Impact of COVID-19 on customer service in FS
      • Figure 1: Short-, medium- and long-term impact of COVID-19 on customer service in financial services, May 2021
    • The market
    • Regulatory focus on vulnerable customers and fairness likely to intensify
    • Digital banks top service league ranks
    • Confidence has largely recovered…
      • Figure 2: Financial confidence index, April 2016-April 2021
    • …but financial impact will need addressing
    • Use of smartphones for everyday activities continues to increase
      • Figure 3: Smartphone activities, July 2019 and March 2021
    • The consumer
    • COVID-19 disrupts consumer finances…
      • Figure 4: Impact of COVID-19 on consumer finances, 4-12 March 2021
    • …and preferred contact channels
    • Perceptions of good customer service vary greatly by sector
      • Figure 5: General impression of customer service offered, selected sectors, March 2021
    • 24/7 assistance will soon be a standard expectation
      • Figure 6: Most important factors in customer service, March 2021
    • The human touch needs to be prioritised for serious queries
    • Preference for email means this channel has a higher role to play in FS
      • Figure 7: Channel preferences in customer service, March 2021
    • Unhappy customers will react, but good customer service can turn negatives into positives
      • Figure 8: Actions taken in response to poor customer service, March 2021
    • COVID-19 is no longer an excuse and people want things to return to normal
      • Figure 9: COVID-19 and customer service, March 2021
    • Shift to digital highlights importance of support for vulnerable customers
      • Figure 10: Attitudes towards customer service, March 2021
  3. Issues and Insights

    • An irreversible shift to digital brings opportunities for customer service…
    • …and highlights the value of human contact
    • Prioritising support for vulnerable customers will be a legacy of the pandemic
    • Addressing fraud and data security will become more pressing
  4. The Market – Key Takeaways

    • Regulatory focus on vulnerable customers and fairness likely to intensify
    • Confidence has largely recovered but financial impact will need addressing
  5. Market Environment

    • FCA finalises guidance on the fair treatment of vulnerable customers…
    • …and proposes a new Consumer Duty
    • Contactless payment limit to increase to £100…
    • …but access to cash will be protected
    • Majority of official complaints relate to banking and credit
      • Figure 11: New complaints to Financial Ombudsman Service, by sector, H2 2020
    • Digital banks top service league ranks
      • Figure 12: Personal banking service quality in Great Britain, January-December 2020
    • Mandated and voluntary information of current account services
  6. Market Drivers

    • Consumer confidence is recovering…
      • Figure 13: Financial confidence index, April 2016-April 2021
    • …but deterioration of household finances will need addressing…
      • Figure 14: Changes in household finances, April 2016-April 2021
    • …while a spike in unemployment is coming
      • Figure 15: Unemployment rate and forecast, 2016/25
    • Use of technology for everyday activities continues to increase…
      • Figure 16: Tablet, laptop and desktop, July 2019 and March 2021
    • …particularly for smartphones…
      • Figure 17: Smartphone activities, July 2019 and March 2021
    • …but not everyone owns a device
      • Figure 18: Personal ownership of technology, March 2021
  7. The Consumer – Key Takeaways

    • COVID-19 disrupts consumer finances and preferred contact channels
    • Perceptions of good customer service vary greatly by sector
    • 24/7 assistance will soon be expected
    • The human touch needs to be prioritised for serious queries
    • Preference for email means this channel has a higher role to play in FS
    • Unhappy customers will react, but good customer service can turn negatives into positives
    • COVID-19 is no longer an excuse and people want service to return to normal
    • Shift to digital highlights importance of support for vulnerable customers
  8. Impact of COVID-19 on Consumer Behaviour

    • COVID-19 has had a profound impact on people’s finances…
      • Figure 19: Impact of COVID-19 on consumer finances, 4-12 March 2021
    • …and on their online and offline behaviours
      • Figure 20: Impact of COVID-19 on consumer behaviour, 16-22 April 2021
  9. Financial Services Industry in Context

    • Banks and building societies lead the way for financial services companies
      • Figure 21: General impression of customer service offered, selected sectors, March 2021
    • PCWs are held in high regard
    • Investment firms have the lowest rating in financial services
    • Older generations are more sceptical
      • Figure 22: General impression of customer service offered by financial services providers, selected sectors, March 2021
  10. Most Important Factors in Customer Service

    • Getting the basics right
      • Figure 23: Most important factors in customer service, March 2021
    • Protecting the vulnerable is a means to an end
    • Accessibility is key
      • Figure 24: Importance of 24/7 assistance in customer service, by age and gender, March 2021
  11. Channel Preferences in Customer Service

    • Prioritising the human touch
    • The role of the email
      • Figure 25: Channel preferences in customer service, March 2021
    • Take control of social media presence
    • The potential of text messaging apps
    • People have a few ‘go to’ channels they prefer, regardless of issue
  12. Reactions to Poor Customer Service

    • Around half of customers have experienced poor customer service
      • Figure 26: Actions taken in response to poor customer service, March 2021
    • Expect unhappy customers to react…
    • …and take the opportunity to prove your credentials
    • Majority of those who react take more than one action
      • Figure 27: Repertoire of actions taken in response to poor customer service, March 2021
    • Recovery period could jeopardise good perceptions
  13. COVID-19 and Customer Service

    • Banks took swift action to support household finances…
    • …but consumers have moved on
      • Figure 28: COVID-19 and customer service, March 2021
    • Perceptions of customer service during pandemic vary greatly
      • Figure 29: Impact of COVID-19 on customer service – CHAID – Tree output, March 2021
  14. Attitudes towards Customer Service

    • Customer service channels must remain focused post-pandemic
    • Shift to digital highlights importance of support for vulnerable customers
      • Figure 30: Attitudes towards customer service, March 2021
    • Supporting the digital customer journey
    • Balancing the risk of fraud…
    • …with cumbersome security processes
  15. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
    • CHAID analysis methodology
      • Figure 31: Impact of COVID-19 on customer service – CHAID – Table output, March 2021

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

Below is a sample report, understand what you are buying.

Click to show report
2024 Sample Consumer Cover

Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.

Trusted by companies. Big and small.

Want to speak to us directly?

Contact us with your enquiry and our expert global team can help.

Get in touch