Financial services industry insights revealed

The past two years have been turbulent, and there has been a significant impact on businesses across every industry. A recent study from Feefo has examined customer feedback from the past two years across eight key sectors, including financial services. With the fallout from Brexit and the Covid pandemic, there has been a lot of change and uncertainty for both businesses and consumers.

The Feefo report analyses more than 5 million verified customer reviews and has provided some intriguing insights into the financial services industry. From the results, there are clear indications as to which brands are doing well, and how some in the financial industry are managing to outperform the competition.

Key sentiments in the financial services sector

By looking into customer reviews from the recent past, Feefo has been able to identify the key drivers of customer sentiment within the sector. The most critical area for customers in the industry is issue resolution, which drives 43% of customer sentiment. Just behind this is pricing, which interestingly shows that price is of vital importance to consumers in financial services compared with other sectors.

Customer service drives 10% of customer sentiment, whereas website, online processes, and good communication were further down the list. There is clear evidence that customers place a lot of value on price, but good service with issue resolution comes in at number one.

The key things that consumers liked from the service received recently included having questions answered, quick and easy processes, and being well looked after throughout the process. The study revealed that consumers were not happy with filling out complicated forms or issues with policy renewals.

Main considerations for financial services businesses

This study has revealed useful data about how customers feel about financial services brands – what is working well, and where companies can improve. Here are some key considerations for financial services brands to take away from this data.

• Customer sentiments should be considered with a holistic approach. Good communication is seen as relatively unimportant as a standalone driver for sentiment. However, the reviews indicate that communication is a vital part of how consumers view rates and prices. For example, communicating with customers about the reasons for a price increase can mitigate the impact of a rise.
• Loyalty is more important than ever before, particularly with so many comparison sites now available for financial services. Consumers now expect more from brands in return for choosing them over competitors. This could include impeccable customer service or a loyalty bonus for staying with them.
• One significant issue for many customers is that many financial services brands are slow to deliver services but constantly sending marketing messages and renewal notices. Businesses could benefit from switching their focus from customer acquisition to customer retention, and recalibrating current key performance indicators to reflect this.

For more information and to read the full insights into the financial services industry and customer reviews, download the Feefo infographic.