Last in the Hearts of Their Customers
Forrester's annual Customer Advocacy ranking grades about 50 financial services firms in the U.S. by the percentage of each firm's customers who agree with the statement "My financial provider does what's best for me, not just its own bottom line."
HSBC's ranking is 16, meaning only 16% of respondents said they agreed with the statement. This is the lowest customer advocacy score ever reported in the United States, down 10 percentage points from HSBC's 2009 score of 26.
Overall, the report shows customers of the biggest banks in the United States are the least likely to believe their financial institution does what's best for them.
Overall, the report shows customers of the biggest banks in the United States are the least likely to believe their financial institution does what's best for them, as opposed to what's best for the bottom line. The report lists the bottom seven of this year's rankings:
- Bank of America: 33%
- Chase: 31%
- Capital One: 29%
- TD Bank/Commerce: 28%
- Fifth Third Bank: 27%
- Citibank: 26%
- HSBC: 16%
On the other hand, Wells Fargo/Wachovia did better than other large banks. About 40% of its customers say they believe the bank does what is best for them. In the past, Wachovia has done better in the rankings than other big banks. As in previous years credit unions overall rank much higher than the big banks, with 70% of their customers saying their financial institution puts their interests first. One reason for this may be the different operating model that credit unions have -- they are owned by their members and focus on customer service. The top four rankings:
- Credit Unions: 70%
- USAA: 64%
- ING Direct: 46%
- Wells Fargo/Wachovia: 40%
Regional banks including PNC, U.S. Bank and BB&T came in with scores similar to Wells Fargo/Wachovia.
This report should make everyone out there ask the question, "Are we on the side of the customer, or are we answering to our shareholders alone?"
Balancing the bottom line with the interests and concerns of customers has never been more crucial for all in financial services.