Consumers’ trust in UAE banking increases from 68% to 74%: Survey

Business Bureau, Gulf Today

UAE Banks Federation (UBF) has unveiled the results of  its 2018 Trust Index Survey, which has been recently completed, revealing that 74% of respondents had high trust in the UAE banking sector, up from 68% in 2017.  This is the fourth consecutive year UBF carries out this survey.

The survey, conducted in collaboration with Kantar, a leading data, insights, and consulting company, also revealed that consumer confidence in the banking sector increased, with 95% of retail banking  customers being satisfied with the performance of their main bank, up from 93% in the previous year.

The results of the 4th edition of the Trust Index Survey also showed that overall impressions have improved, with 83% of participants recording a ‘very positive’ perception towards UAE banks, compared with 76%  in 2017 and 72% in 2016.

 Specific areas that have shown significant improvement are ‘Excellent Customer Service’, which is up from 65% to 76% year-on-year; ‘Contribution to the Economy’, which is up from 68% to 77% and ‘Range of Products and Services’,  which is up from 65% to 76%.

AbdulAziz Al Ghurair, Chairman of UBF said: “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. We are delighted that despite global geopolitical and economic headwinds, this 4th 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.”

Consumers believe that banks are well equipped for dealing 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% of the respondents answered ‘high interest rates for loans and credit cards.’

The survey also highlighted the fact that the UAE enjoys higher trust in the banking sector than many other developed nations, including the USA, UK, China, Japan, France and Germany.

He added: “UBF will continue working closely with its 52 member banks  to facilitate the exchange of knowledge and fulfill its key role to elevate the standards of the industry for the benefit of the wider community and country. We have a responsibility to support the UAE’s progressive vision to empower society at all levels,  and we are confident that the results of this Trust Index Survey will inspire banks to keep improving, better prepare for the future, and help address the ever-changing challenges in the market.”

The key points revealed during the survey show that 72% of respondents stated that UAE banks are equally good or even better than banks in their home  country, up from 65% in 2017. ‘Good customer service’ and ‘safe and secure services and goods’ were the top of mind associations with UAE banks – 48% and 43%, respectively. 78% of respondents stated that UAE banks are excellent or very good at providing convenience. 77% of respondents stated that their experience with ATMs was excellent or very good and 76% of respondents stated that their experience with internet banking was excellent or very good.

Launched in 2015 by UBF to measure consumer perceptions and confidence in the banking industry, the annual Trust Index Survey gathers valuable data which helps drive corrective measures and strategic action  plans throughout the sector.

This year’s edition surveyed a group of 1,515 adults based in the UAE in 2018. Respondents were carefully selected from a diverse range of nationalities and demographics to ensure a representative sample.

The UAE Banks Federation is a professional representative body comprising 52-member banks operating in the UAE. The Federation advocates all banks’ interests, and enhances cooperation and coordination among them, to promote and upgrade the UAE’s banking sector for the benefit of the sector, its customers, and the national economy.

The UAE Banks Federation’s mission and objectives are focused on representing its member banks and defending their interests and rights. The federation provides a platform for cooperation and exchange of ideas and opinions among member banks and plays a major role in raising public awareness around the beneficial role and distinctive financial, economic and social contribution of the banks to the UAE.

The Federation has an Advisory Council that is consisted of 28 Bank CEOs which oversees the implementation of the policies, follows up on UBF’s activities and makes necessary decisions by the General Secretariat of the Union and its 20 specialized technical committees who discuss all relevant banking issues.