UAE banks lead GCC in branch operations
Banks in the UAE achieved the highest score in the GCC for best performance in branch operations, call centres, and multi-channel integration, a study said.
In the region, the UAE was followed by Kuwait and Saudi Arabia in best banking performance, while globally, Hong Kong was adjudged as the top in the world in terms of best performing retail banks, followed by Switzerland and the United States.
While GCC banks recorded 20 per cent below the global average score across all channels, the UAE banks scored the highest on Booz Allen’s Revenue Enhancement Index. “UAE banks had the least performance variation among each other compared to banks in other GCC countries. Kuwaiti banks scored second, even though NBK’s branches and call center performance stand out by a wide margin against its peers, with new branch models that have a clear layout, product displays, and well trained agents. Saudi Arabia scored third; yet, branches received high scores for their dedicated sections for mass affluent customers in most branches,” said the study “Striving for growth: Best practices in retail banking sales and service channels.”
According to the study, the top performing GCC banks achieved the highest scores at near the global average, across most channels; whereas, the remaining banks had a wide performance variation across the various channels.
However, the study noted that worldwide, banks still need to get the basics right in branches. “Privacy, staff knowledgeable about products, query resolution and waiting times are the most important criteria for customers in branches. This is particularly relevant for GCC banks whose branch performance — with very few exceptions — scored, on average, 20 per cent less than the global average.”
The performance of GCC banks in call centre operation vary by country, with Saudi banks achieving the lowest score as a result of having the longest waiting time — even for affluent customers who have dedicated call center numbers — and the limited knowledge of agents beyond basic products. UAE banks scored the highest in the region, but the score is below the global average.
“For many customers in the GCC, the branch is the first point of contact, yet many banks fail to get the basics right. Branches are characterised by long queues, poor parking facilities, and low levels of customer service,” said Beirut-based Booz Allen Vice President Peter Vayanos.
The comprehensive study, which used customer research and mystery shopping to assess 100 banks across 17 countries (including 12 banks in the GCC), looked at what customers want from their banks, how banks are performing and best practices to drive profitable growth. Based on the findings of this research, the Booz Allen Revenue Enhancement (BRE) Index was developed, taking into account performance across branches, call centres, online, mobile sales forces and a multi-channel index.
The study finds that despite technological advances, globally customers still prefer banking in branches — 63 per cent choose to use a branch for purchasing current and savings account products and 54 per cent choose their branch to purchase mortgages. “The preferences of GCC customers are almost identical to the global average. However, branch importance is in relative decline. For purchasing less complex products, such as credit cards, globally over half would now use an alternative channel with 21 per cent purchasing online and 16 per cent by telephone. The situation is inverted in the GCC where 18 per cent of customers prefer purchasing by telephone compared to only 11 per cent who preferred purchasing online.”
According to the study, globally, online channel usage is rising and is preferred over phone, particularly for simple products and transactions; however, this is taking place at a slower pace in the GCC. The trend away from the branch is being led by affluent consumers, who tend to be time poor and are 30 per cent more likely to prefer using online services.
“The branch is declining in importance, but banks are failing to capitalize on the enormous potential of key growth channels such as online and mobile sales forces, because the performance of these channels does not meet customer needs and expectations,” said London-based Booz Allen vice president Alan Gemes.
It noted that retail banks are performing best in branches and online, but call centres and mobile sales forces do not meet key requirements. Across all channels there is a significant difference between the performance of the best banks, which show near excellent service, and the rest of the pack.
The study said banks still need to work on their consistent delivery. The study found that 39 per cent of banks scored low on ensuring that their welcome desk is always available and helpful.
The study said to take advantage of online growth banks should improve segmented offerings. “Security is the main concern for online customers and globally banks are performing well, including GCC banks, but the channel needs to develop to take advantage of the mass affluent market.” The survey found that 72 per cent of banks scored low on their segmented online facilities for mass affluent customers. In the GCC, it observed limited or no segmented online offerings.
The study urged banks to increase levels of security to keep in line with customer expectations, including virtual keyboards, random number generators and complex password systems.
In the region, the UAE was followed by Kuwait and Saudi Arabia in best banking performance, while globally, Hong Kong was adjudged as the top in the world in terms of best performing retail banks, followed by Switzerland and the United States.
While GCC banks recorded 20 per cent below the global average score across all channels, the UAE banks scored the highest on Booz Allen’s Revenue Enhancement Index. “UAE banks had the least performance variation among each other compared to banks in other GCC countries. Kuwaiti banks scored second, even though NBK’s branches and call center performance stand out by a wide margin against its peers, with new branch models that have a clear layout, product displays, and well trained agents. Saudi Arabia scored third; yet, branches received high scores for their dedicated sections for mass affluent customers in most branches,” said the study “Striving for growth: Best practices in retail banking sales and service channels.”
According to the study, the top performing GCC banks achieved the highest scores at near the global average, across most channels; whereas, the remaining banks had a wide performance variation across the various channels.
However, the study noted that worldwide, banks still need to get the basics right in branches. “Privacy, staff knowledgeable about products, query resolution and waiting times are the most important criteria for customers in branches. This is particularly relevant for GCC banks whose branch performance — with very few exceptions — scored, on average, 20 per cent less than the global average.”
The performance of GCC banks in call centre operation vary by country, with Saudi banks achieving the lowest score as a result of having the longest waiting time — even for affluent customers who have dedicated call center numbers — and the limited knowledge of agents beyond basic products. UAE banks scored the highest in the region, but the score is below the global average.
“For many customers in the GCC, the branch is the first point of contact, yet many banks fail to get the basics right. Branches are characterised by long queues, poor parking facilities, and low levels of customer service,” said Beirut-based Booz Allen Vice President Peter Vayanos.
The comprehensive study, which used customer research and mystery shopping to assess 100 banks across 17 countries (including 12 banks in the GCC), looked at what customers want from their banks, how banks are performing and best practices to drive profitable growth. Based on the findings of this research, the Booz Allen Revenue Enhancement (BRE) Index was developed, taking into account performance across branches, call centres, online, mobile sales forces and a multi-channel index.
The study finds that despite technological advances, globally customers still prefer banking in branches — 63 per cent choose to use a branch for purchasing current and savings account products and 54 per cent choose their branch to purchase mortgages. “The preferences of GCC customers are almost identical to the global average. However, branch importance is in relative decline. For purchasing less complex products, such as credit cards, globally over half would now use an alternative channel with 21 per cent purchasing online and 16 per cent by telephone. The situation is inverted in the GCC where 18 per cent of customers prefer purchasing by telephone compared to only 11 per cent who preferred purchasing online.”
According to the study, globally, online channel usage is rising and is preferred over phone, particularly for simple products and transactions; however, this is taking place at a slower pace in the GCC. The trend away from the branch is being led by affluent consumers, who tend to be time poor and are 30 per cent more likely to prefer using online services.
“The branch is declining in importance, but banks are failing to capitalize on the enormous potential of key growth channels such as online and mobile sales forces, because the performance of these channels does not meet customer needs and expectations,” said London-based Booz Allen vice president Alan Gemes.
It noted that retail banks are performing best in branches and online, but call centres and mobile sales forces do not meet key requirements. Across all channels there is a significant difference between the performance of the best banks, which show near excellent service, and the rest of the pack.
The study said banks still need to work on their consistent delivery. The study found that 39 per cent of banks scored low on ensuring that their welcome desk is always available and helpful.
The study said to take advantage of online growth banks should improve segmented offerings. “Security is the main concern for online customers and globally banks are performing well, including GCC banks, but the channel needs to develop to take advantage of the mass affluent market.” The survey found that 72 per cent of banks scored low on their segmented online facilities for mass affluent customers. In the GCC, it observed limited or no segmented online offerings.
The study urged banks to increase levels of security to keep in line with customer expectations, including virtual keyboards, random number generators and complex password systems.
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