Banks know you can’t be bothered switching
A new report from business intelligence provider Datamonitor has found that customer loyalty in financial services is closely tied to the perceived effort of switching bank. This finding comes despite efforts from regulators to make switching easier in an effort to increase competition.
"Barriers to exit in financial services currently have a higher impact on customer retention than factors such as satisfaction. For transaction accounts the effort involved acts as a deterrent to switching, while for mortgages exit fees serve to lock customers' in" says Petter Ingemarsson, Senior Analyst at Datamonitor and author of the report.