APD | Customer trust in UAE banks increases by 6 percent: Survey

By APD writer Muhammad Sohail

Three-fourths of customers trust their banks in the United Arab Emirates (UAE), according to the 2018 Trust Index Survey of UAE Banks Federation (UBF), local media reported Friday.

The UBF conducted in collaboration with Kantar, the data consultancy, and its results show that 74 percent of respondents had high trust in the UAE banking sector, up from 68 percent in 2017.

This is the fourth consecutive year UBF has carried out this survey. Consumer confidence in the banking sector also has increased, with 95 percent of retail customers satisfied with the performance of their main bank, up from 93 percent.

Overall impressions to have improved, with 83 percent recording a “very positive” perception towards local banks, compared with 76 percent in 2017 and 72 percent in 2016.

Specific areas that have shown significant improvement are “excellent customer service”, which is up from 65 percent to 76 percent; “contribution to the economy”, up from 68 percent to 77 percent, and “range of products and services”, from 65 percent to 76 percent.

“Despite global geopolitical and economic headwinds, this edition of the Trust Index Survey shows marked improvements, demonstrating the UAE banking sector’s ongoing commitment to enhance services and products, provide convenience and outstanding customer experience, and address key issues and challenges,” said Abdulaziz Al Ghurair, Chairman of UBF.

The survey results also showed consumers believe banks are well equipped to deal with a variety of issues in the sector.

“Keeping up with digital innovations” was the highest performing area, followed by “contributions to the economic development of the UAE”. However, when asked what challenges banks in the UAE faced, 61 percent of the respondents answered, “High-interest rates for loans and credit cards”.

The survey highlighted the fact that the UAE enjoys higher trust in the banking sector than many other developed nations, including the US, UK, China, Japan, France and Germany. Despite the challenging environment, the overall improvement in consumer confidence is seen as a sign of economic resilience.

“The sustainable growth of the economy is strongly related to consumer confidence, and trust is a key parameter that helps us understand the banking industry’s capability to generate this confidence,” said Al Ghurair.

“We are confident the results of this survey will inspire banks to keep improving, better prepare for the future, and help address the ever-changing challenges in the market.”

Highlights of the survey are: 72 percent of respondents stated UAE banks are equally good or even better than banks in their home country, up from 65 percent in 2017; “Good customer service” and “safe and secure services and goods” were top-of-mind associations with UAE banks, 48 and 43 percent, respectively.

(ASIA PACIFIC DAILY)