According to a recent study by Forrester, a global research and advisory firm, the customer experience (CX) quality of multichannel banks in Singapore declined slightly in 2023, resulting in mixed results and a reshuffle of the rankings. The study, based on a survey of over 1,800 customers in Singapore, revealed that only two major banks in Singapore– Citibank and DBS– improved their CX scores, whilst three other banks– OCBC, UOB, and Standard Chartered– reported lower CX scores compared to a year ago.
Citibank Tops the CX Index for the Second Time in Three Years
Citibank was the top-ranked bank for the second time in three years, with a CX score of 68.3 out of 100, up from 66.8 in 2022. The global bank scored well on all six dimensions of CX quality: effectiveness, ease, emotion, retention, enrichment, and advocacy. Citibank also had the highest percentage of customers who felt valued (49%), confident (48%), and appreciated (47%) by the bank.
Brendan Carney, Citibank Singapore CEO, attributed the bank’s success to its customer-centric approach and continuous innovation. “We listen to our customers every day for feedback on how we can serve them better and provide them with more value, and we invest every day to act on that feedback,” he said. “Our goal is not just to give great service, but also to offer compelling value as well to generate sustained customer delight.”
DBS Climbs Up to the Second Place with a Significant Improvement
DBS was the most improved bank in the CX Index, with a CX score of 66.7 out of 100, up from 62.9 in 2022. The bank improved on five out of six dimensions of CX quality, with the biggest gains in emotion and retention. DBS also had the highest percentage of customers who felt happy (49%), respected (48%), and trusting (47%) by the bank.
DBS attributed its improvement to its digital transformation and customer-centric culture. The bank said that it leveraged data and technology to deliver personalised and seamless experiences across channels and touchpoints. The bank also said that it empowered its employees to go the extra mile for customers and create moments of joy.
OCBC, UOB, and Standard Chartered Fall Behind with Lower CX Scores
OCBC, UOB, and Standard Chartered all saw their CX scores drop in 2023, indicating that they failed to meet the needs and expectations of their customers amid the economic challenges. OCBC’s CX score fell from 65.6 in 2022 to 64.8 in 2023, UOB’s CX score fell from 65.4 in 2022 to 64.5 in 2023, and Standard Chartered’s CX score fell from 65.1 in 2022 to 62.6 in 2023.
The three banks scored poorly on emotion and retention, which are the key drivers of customer loyalty and revenue growth. The three banks also had lower percentages of customers who felt positive emotions such as happiness, confidence, and appreciation by the bank.
Physical CX Quality Rated the Lowest Amongst All Channels
The study also revealed that the quality of physical CX was rated the lowest amongst all channels, with an average score of 58.5 out of 100. This is lower than digital-only CX (61 points) and hybrid CX (63.1 points). The study suggested that some banks may have overpivoted to focus on digital channels during the COVID-19 pandemic, neglecting the service quality in physical channels such as call centers and branches.
Dane Anderson, SVP of international research and product at Forrester, warned that banks should not underestimate the importance of physical CX for their customers. “There is a common misconception in banking that customers universally prefer digital experiences and are ready to abandon physical channels,” he said. “Whilst investing in digital experiences was a necessity during COVID-19, by overpivoting to focus on digital channels, banks in Singapore risk losing service capacity and neglecting the service quality in physical channels like call centers and branches.”
Key Takeaways for Banks to Improve Their CX Quality
The study concluded that banks in Singapore need to improve their CX quality to differentiate themselves from their competitors and earn their customers’ loyalty. The study recommended that banks should:
- Understand their customers’ needs, expectations, preferences, and behaviours across different segments and personas.
- Design and deliver omnichannel experiences that are consistent, convenient, personalised, and empathetic.
- Measure and monitor their CX performance using metrics that align with their business goals and customer outcomes.
- Invest in employee engagement and empowerment to foster a customer-centric culture and enable frontline staff to deliver exceptional service.
- Innovate and experiment with new technologies and solutions that can enhance their CX capabilities and create value for their customers.
