South Africans switch banks due to low service
A new survey conducted by South Africa s online guide to money, Justmoney.co.za, revealed on Wednesday, 10 February 2010, that more than 50% of respondents polled have never switched banks in their lifetime and that those who have, did so primarily because they were unhappy with the service levels of their bank.
Two thirds of users who claimed to have moved banks in their lifetime said they moved banks because of the low levels of service, making it the number one reason for switching banks.
Other popular reasons for switching were for increased convenience and lower banking charges.
Andy Gilder, General Manager of justmoney.co.za, said: "We had a variety of reasons for why people change banks, but those who had never changed bank seemed apathetic in explaining why they have never moved." Gilder said that while some of the fears of switching were potentially legitimate - some people fearing mix ups and costs associated with switching debit-orders, the local landscape is steadily gearing up for easier bank switching.
"We now have banks offering up to R1000 cash for opening a new current account and others who will offer to switch your debit orders on your behalf for free.
"While there are certainly valid reasons for not wanting to switch banks, a reason like 'I couldn't be asked' is not one of them," Gilder added.
Commenting on service levels on behalf of independent online consumer affairs portal getclosure, Richard Wright said: "These poll results are in line with our 2009 findings: almost half of banking complaints submitted on getclosure were about poor service.
"These findings suggest that banks need to start listening to their customers and engaging with them rather than marketing to them.
"With the rise of social media platforms, you could argue that banks don't really have a choice in the matter as conversations about their brands are happening online, with or without their participation," Wright concluded.
Source: I-Net Bridge
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