Banks losing relevance with mistrust and lack of innovation

[CityFarmer]

I am a bit surprise on the survey result, especially on the trust level on "keep their money safe"...

Banks losing relevance with mistrust and lack of innovation: EY

SINGAPORE (Oct 11): Up to 40% of consumers globally are reporting less reliance on their traditional bank and increased excitement about alternatives, according to the EY 2016 Global Consumer Banking Survey.

Traditional banks are losing relevance as consumers report a lack of trust, with only 48% of consumers globally trusting banks to keep their money safe, and 26% believing that banks provide unbiased advice for their financial needs lagging behind digital banks (29%) and other companies providing banking services (30%). Changing consumer behaviors and expectations set by digital innovators and increased competition from new players are also threatening the banks’ relevance.

The EY Bank Relevance Index (BRI) evaluates how customers interact with banks now and how they expect to do so in the future. Globally, retail banks scored a 75.1 out of 100, due to the impact of new competitors and banking services.

The survey asked 55,000 consumers from across 32 countries including 1,007 in Singapore, 2,025 in Malaysia and 2,053 in Indonesia.
...
http://www.theedgemarkets.com.sg/sg/arti...ovation-ey

[brattzz]

it's quite accurate based on my own experience.

What used to be a simple, keep money safe (savings), loan money with good interests (loans), service, has evolved into a monster commission-driven biz, by greedy sales RMs selling mini-bonds (promising high returns, low risk), credit cards, unit trusts and ILP insurances...etc...

it's a nightmare actually! i even encounter RMs looking at client's bankbooks when queuing up and channelling them to the sales booths... this is totally wrong!

Nowsdays, i do not trust any banks at all, especially when their RMs tell me about products that will make me rich!!!
yeah rite!!

I only trust MAS with it's $50K saving deposit insurance!

until today, still have to go down to bank to renew FD at attractive rates... when it can be renewed online at the standard flat rate.... gosh... lousy service!

[corydorus]

I lost trust in bank few years ago after 2008 GFC and after that when they channel me to booth for questionable push of products from Fixed Deposits. Most of the time investors end up loser. They need to drive better expectation.

[brattzz]

https://sg.finance.yahoo.com/news/singap...31648.html

more cases, 1MDB commissions really rocks!

Ur neighbour first bank (DBS) is in it too!

[weijian]

I am a bit surprise on the survey result, especially on the trust level on "keep their money safe"...

Well, if i click into the The Edge article, the info-graphic states that "48% of customers have complete trust in banks to keep their money safe"

This smells more than a rat in the way the survey is structured or even advertised....So i decided to click into the actual EY website (http://www.ey.com/gl/en/industries/finan...tomertrust) and it states:



93% of customers trust banks to keep their money safe




I rest my case.

[CityFarmer]

I am a bit surprise on the survey result, especially on the trust level on "keep their money safe"...

Well, if i click into the The Edge article, the info-graphic states that "48% of customers have complete trust in banks to keep their money safe"

This smells more than a rat in the way the survey is structured or even advertised....So i decided to click into the actual EY website (http://www.ey.com/gl/en/industries/finan...tomertrust) and it states:



93% of customers trust banks to keep their money safe




I rest my case.

Thank you. It is always wise, to dig in more, when doubt. 

To share the following statement
"He uses statistics like a drunken man uses a lamp post, more for support than illumination" - Andrew Lang

The author has used the survey statistics, to "support his own's presumptions", rather than "seeing clearer picture by the new findings"? Very likely so...

[weijian]

When I was a young engineer, my mentor always emphasized "Let the data speak for itself". I didn't practised that as much as it was preached until I found out how much it could be leveraged onto my personal investing journey. I am still learning and many times, I still put the cart before the horse. Some food for thought below (for those who haven't read this yet)

The Story of Obvious Adams:
http://www.leadershipnow.com/leadershop/2030-3.html

[specuvestor]

Actually when I look at the executive summary I can't find where the 93% comes from

VBs know that I am always skeptical about statistics unless we know the basis. To paraphrase Dilbert Comics: "40% of MCs were taken on Monday and Friday so that they can have super long weekend"