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Switching replaces Customer Retention is the latest Trend in Banking

Date: 01 Sep 2007

In a recently published article, Professor of Marketing, Dr. Mary Lambkin, noted that recent trends show that bankers, along with other service providers, can no longer take for granted the loyalty or inertia of their customers.

Examining recent trends in switching amongst banks’ customers, Professor Lambkin notes that the main stimulus to switching has come from the regulatory authorities rather than the customers themselves.

She makes comparisons with the UK market where the highest rates of churn in financial services products are in mortgages, closely followed by home insurance. By comparison, switching amongst current accounts and savings accounts in the UK remains at a very low level; although it remains significantly ahead of Ireland.

Professor Lambkin goes on to note that with increasing numbers of entrants to the Irish market, competition is likely to hot up considerably.

Read the full article.