Still getting tougher in the Asian Corporate Transaction Banking Market…
The survey also finds that while banks’ initiatives in developing indirect channels such as electronic delivery are not highly valued by clients, banks are also falling behind in areas of face-to-face relationship factors such as "Quality and Frequency of Contact with Senior Bankers" where clients want better performance. Notably, given the strong shifts to back office centralisation in transaction banking generally, local branch network coverage remains a key, albeit diminishing area of performance improvement for banks in the eyes of CFOs, who continue to demand direct, authority-based contact.
Commenting on the report, East & Partners’ principal analyst Paul Dowling said "The report shows that Corporates in Asia want direct, personalised service delivery and relationship management as well as the efficiency of electronic delivery, but the banks are only focussing on one side of the equation, which is the more indirect model of customer engagement. They do this at their peril."
"Importantly, this is being directly reflected in accelerating account churn, with several players having to run very hard in new account acquisition just to stand still."
The following table depicts the most and the least important service attributes in Asian Transaction Banking relationships, and where Transaction Banks overall perform the best and the poorest.
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Three most important service factors in Transaction Banking Relationships
Quality of Transaction Execution |
Quality of Overall Service Delivery |
Response times on Queries |
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Three least important service factors in Transaction Banking Relationships
Usefulness of Transaction Bank’s Website |
Credit Rating of the Transaction Bank |
Reputation/Name of the Transaction Bank |
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Overall, Transaction Banks received the best ratings in
Credit Rating of Bank |
Reputation/Name of Bank |
Quality of Transaction Execution |
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Overall, Transaction Banks received the worst ratings in
Quality of Contact with Senior Bank Management |
Frequency of Contact with Senior Bank Management |
Effectiveness of Problem Resolution |
In this latest six monthly survey for the Asian Corporate Transaction and e-Banking report, East interviewed 846 Chief Financial Officers or equivalents at Asia’s Top 900 Corporates (as defined by sales turnover) spread evenly through nine countries: China, Hong Kong, Indonesia, Malaysia, Philippines, Singapore, South Korea, Taiwan and Thailand.
The report is a study of customer satisfaction and demand levels in 27 most important service attributes as rated by the Corporates, and provides key information on market share among banks.
For more information, contact:
Rita S. Lim
Regional Director Asia
East & Partners Pty Ltd
Tel: +61-2-9247 5955
Fax: +61-2-9247 1511
Mobile: +61-416 187 080
rita.l@eastandpartners.com
www.eastandpartners.com