Banks must fight harder for customer loyalty, says Collinson Latitude

UAE. As the GCC retail banking market becomes increasingly competitive, Collinson Latitude is calling on Middle East financial organisations to act fast or risk losing vital customers.

A global provider of incremental revenue products and services, Collinson Latitude believes Middle East banks, in particular, need to think more innovatively to retain customers who are being presented with a growing choice of financial services products.

Collinson Latitude’s Head of Middle East and Africa planning and business development, George Wilson-Howell, says: “As the economy recovers from the depths of the economic downturn, Middle East customers are demanding a better service from their banks straight away and will change banks without hesitation if disappointed.

A study this year by professional services giant Ernst & Young – ‘Retail Banking in the GCC: Competing for Customers’ – contains the daunting statistic that 25% of GCC retail banking customers plan to switch banks by the end of 2011. Banks need to think fast and act fast. It takes an awful lot of time and money to win back lost customers, but there are rapid, low-cost ways to maintain the loyalty of the customers you already hold. Superior customer service remains key, but you also need to increase your customers’ engagement with – and rewards from – your company in many areas of their lives, not just financial services. A long-term, profitable relationship will follow.

“The GCC financial services sector is a crowded market, which means each company must find ways to stand out from competitors. GCC banks understand the importance of customer loyalty but, until now, have lacked access to the latest products for rewarding customers. Collinson Latitude recognises the immense potential in Middle East financial services, from credit and debit card products through to current and savings accounts and the high-net-worth sector.”

Collinson Latitude’s multi-channel products, which include rewards and subscription-based membership programmes, can be seamlessly integrated into a financial service provider’s existing environment. Capitalising on the proven and growing popularity of online shopping is a particularly strong route to customer retention. ‘RewardAll’, for example, is a merchant-funded online shopping and rewards programme that brings together thousands of diverse online merchants globally, so that each time a customer makes a purchase through the ‘Reward All’ portal, they can earn cashback paid directly into their bank account.