UAE Banks Federations Trust Index reveals customer confidence in banking sector is upbeat despite challenges
Perceptions about UAE banking sector remain healthy and majority of customers believe that banks are positively dealing with a variety of issues facing the sector
The UAE Banks Federation (UBF), the professional body representing 49 banks in the UAE, today unveiled results of its Trust Index survey, to track the level of trust amongst customers in the UAE’s banking sector.
72% of the respondents who participated in the survey agree that their impression towards banks is ‘very positive’ – increasing from 70% in 2015. Additionally, ‘Trust Index’ in the sector remained largely steady and robust at 68% despite global challenges and uncertainties.
Furthermore, customers who said their view of banks has improved in the last six months were thrice in number than those who assumed a contrary position. The results also revealed that a high proportion of respondents would share a positive word of mouth about the banking sector in general (74%) as well as their own bank (77%). In addition, the survey found that consumers (38%) are more likely to say that UAE banks are better than financial institutions in their home countries.
H.E. Abdul Aziz Al Ghurair, Chairman of UAE Banks Federation, said: “Despite economic uncertainties, this year’s Trust Index indicates that perception about the UAE’s banking sector is healthy and steady as evaluated against a set of crucial parameters in the survey and that overall trust remains high amongst customers. Preparing the industry for future trends is a priority of the UAE Banks Federation, and we are also happy to see the industry making a positive impact in the digital space. As an organization that champions best practices through ensuring that key banking players work hand in hand to support the greater growth of the sector, we will continue to leverage the findings to steer the banking industry in the UAE towards greater resilience and competitiveness.”
The survey reveals that banks are well-equipped to deal with issues such as fostering digital innovation, preventing cybercrime and contributing to national economic development. 82% of the customers believe that banks are positively dealing with a variety of issues facing the sector such as keeping up with digital innovation – up from 78% registered last year. Majority of the respondents (73%) were also confident of banks’ fortification against potential cybercrime activity; and as high as 73% agree that banks make significant contributions to the UAE’s economic development.
The UAE Banks Federation is committed to using the Trust Index as an impetus to further strengthen UAE’s banking services, as there is room for improvement in areas such as publically communicating responsiveness to changing regulations, providing good returns to investors to help them grow their wealth, and educating customers and setting right expectations upfront. Building on the positive findings from the survey, the federation aims to encourage banks to achieve a highest level of ‘Customer Satisfaction’ through world-class levels of customer service.
The survey further showed that customer awareness about UBF’s outreach initiatives to support Small & Medium Enterprises (SMEs) was at a high of 72%, and of them, two-thirds had a positive reaction towards its activities. A high awareness level with regards to the UAE’s cashless ecosystem is also reflected in the survey where 85% are aware of the ‘mobile wallet’ concept, a remarkable increase from 76% in 2015. 79% of the customers were also found to be aware of the ‘Customer Charter’, which gives bank customers in the UAE clear guidelines about the standards of service they can expect from their banks.
The Trust Index was launched by the UAE Banks Federation last year as an annual survey whose results are discussed amongst top industry executives and form a key component of corrective measures and strategic action plans for the sector. Prepared in collaboration with an independent market research consultant – the second edition of Trust Index surveyed 1,530 adult respondents of varied nationalities over multiple channels to ensure an optimum level of representation.
