17 October 2017
Register now

Scottish customers will switch banks if branches are closed

20 January 2004  |  4277 views  |  0 Halifax Sign

Despite the growth in Internet and telephone banking, over half of Scottish customers still prefer visiting branches and will move banks if branches are shut down, according to research conducted by Heriot-Watt University's Social Enterprise Institute (SEI).

The research surveyed 2678 Scottish customers of HBOS, The Royal Bank of Scotland, Clydesdale and Lloyds TSB and showed that over 55% of customers still make a weekly business visit to their local branch.

Survey respondents were particularly resistant to branch closures, with almost a quarter (24%) saying that they would switch to another bank if local branches closed. Poor customer service was cited by 19% of respondents as the main reason for switching.

SEI says customers at HBOS, which has recently undertaken a programme of branch closures, expressed a particularly high level of dissatisfaction with service.

Declan Jones, director of the SEI says the research shows that customers demand a high quality branch service and are willing to switch banks to find it: "Where customers are dissatisfied about branch closures and the subsequent impact on services, they also feel an increase in negative attitudes towards the bank.

Jones says the study shows that these negative feelings are strongest amongst HBOS customers.

"Given the strength of such feelings identified in our research, it would appear that this is an issue for strategists to take on board alongside the potential cost-savings offered by new technology," he adds.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

US banks set to spend $1.4bn on branch renewal

US banks set to spend $1.4bn on branch renewal

16 January 2004  |  3506 views  |  0 comments
Abbey commissions Getronics for EUR40 million branch refit

Abbey commissions Getronics for EUR40 million branch refit

15 December 2003  |  4404 views  |  0 comments
European banks set to revamp branches

European banks set to revamp branches

04 April 2003  |  4060 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.capgemini.comvisit www.vasco.com

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
14844 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
8145 views comments | 15 tweets | 21 linkedin
hands typing furiouslyHow artificial intelligence can deliver a...
7468 views 0 | 7 tweets | 9 linkedin
satelliteGates Foundation backs Ripple collaboratio...
6768 views comments | 13 tweets | 7 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
6112 views comments | 8 tweets | 16 linkedin

Featured job

Competitive
New York, NY - USA (some flexibility on location)

Find your next job