What is the Rate of Customer Retention Among Swiss Banks?

What is the rate of customer retention among Swiss banks?

Hi there,

The customer retention rates of Swiss banks are high. A survey of 2500 bank customers conducted by the University of Lucerne in 2017 showed that only 1 percent of bank customers planned to change to a different bank for their primary banking activities (private account, mortgage, etc.). Only 5 percent of bank customers had considered changing their primary bank.

Aside from consumers' primary banking relationships, more general answers regarding chainging banks indicate similar levels of customer retention.

Possible reasons for high customer retention among Swiss banks:

- Customers who mortgage property to banks are often contractually bound to the banks which hold their mortgages. Penalty fees normally apply to premature mortgage terminations.

- The effort involved in changing private accounts is another deterent. While it is easy to close a private account, providing new bank details to all parties which may possibly deposit money into a private account and setting up recurring transactions requires effort.

- Banking packages: Swiss banks have only recently begun to bundle services and offer them as a package. One of the reasons why banks offer banking packages is to retain customers by offering a one-stop solution to banking needs. Comparing enitre bank packages is more difficult for consumers than comparing individual products.

- Regularly comparing bank fees and charges is not yet a common practice among Swiss bank customers. In many cases, bank customers are not aware of how the fees they pay compare to those paid by customers of other banks.

- Customer loyalty levels are generally high in Switzerland. This is true across all categories of goods and services.

- Customer satisfaction levels among Swiss bank customers are relatively high.

Best regards from Moneyguru

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