Consumer trust in banks globally is on the rise, according to a new study of customers’ attitudes by
Ernst and Young
, but Irish bank customers remain among the most dissatisfied in the world with the performance of their financial institutions.
According to the firm's 2014 Global Banking Survey, confidence in and trust of banks in Ireland has decreased most globally in the last two years.
The study, which surveyed 32,000 retail bank customers globally including more than 400 in Ireland, found that consumer confidence in banks was increasing in many countries around the world.
In Ireland, however, confidence had decreased 62 per cent since 2012.
Ireland, Denmark and Spain also had the highest instances of reported customer complaints and the lowest percentage of customers who were satisfied with how their problems were handled.
In Ireland, just 50 per cent of bank customers were satisfied with how their complaints were handled, compared to 67 per cent globally.
"Consumer confidence globally has gone up though the results for Ireland are less positive where confidence and trust levels have decreased most since 2012," said Patricia Stack, a director of EY's financial services advisory division.
"Banks have some way to go to improve this – for example, increasing transparency around fees and charges. Additionally, improving how they deal with resolving problems or complaints will be critical if banks are to continue to win confidence and build trust."
Increased confidence
Globally, banks are viewed by customers as providing traditional services well, according to the study. One-third of global banking customers reported an increase in confidence in the industry compared to a year ago, although Ireland was one of the exceptions to this.
Confidence in financial institutions increased most in India (77 per cent), Saudi Arabia (68 per cent), and Luxembourg (67 per cent).
Just over a half of bank customers around the world have opened or closed an account in the past year, according to the survey, while 40 per cent plan to do so in the year ahead.
Of the 60 per cent who have not closed or plan to close their accounts, about a fifth think all banks “are the same” and 17 per cent say the process if just too “difficult” to execute.
About 15 per cent of all problems reported by bank customers to their institutions are in relation to the transparency of fees and charges.
