A new survey of users of retail financial services by the business consultants Deloitte reveals that regular contact a;nd personal financial advice, carry more weight than following the best interest deals.Â
In a survey of 2000 adults, Deloitte found that 66% of people bank where they know they can rely on personal service, compared with 30% who place their current account based purely on the highest rate of interest.Â
Face-to-face contact was an equally strong indicator, with 53% of people saying they would only organise their financial planning around a bank that had a branch near enough for them to visit.Â
The same need for personal contact and financial advice applied to mortgage lending, with 65% of people revealing they would insist on sitting down with an adviser, before buying a mortgage.Â
When good service breaks down, the opposite is true, according to the survey: 21% of respondents had voted with their feet, moving their account to another bank due to shoddy service in the past two years.Â
The news comes in a week when many banks consider ending free banking services, in order to generate new revenue streams. The banks are anxious over mounting pressure from government and the Office of Fair Trading to challenge their late payment fees and penalty charges.Â
At a time when banking customers are more aware of their finances, and service-driven new entrants to the UK banking market were waiting on the sidelines, banks needed to ensure good personal service, rather than running the risk of simply competing on price, Deloitte’s financial services strategy partner, Ian Foottit, said.
