New Survey Uncovers Customer Satisfaction within UK Financial Services
Self-Directed Investment Platforms Rated Highest for Value in Latest Simon-Kucher Consumer Duty Survey
[London, 24 June, 2024] - Simon-Kucher has unveiled its latest Consumer Duty Customer Survey, providing critical insights into how UK financial service providers perform across key customer satisfaction metrics. Conducted in April 2024 with over 3,000 respondents, the survey highlights significant challenges and opportunities in the financial services sector under the Consumer Duty framework. The survey canvassed customers from various financial subsectors, including Self-Directed Investment Platforms, Wealth Managers, and Retail Banks, to understand how well these services are meeting customer needs, offering value for money, providing quality information, and delivering customer support.
Key Findings:
- Self-Directed Investment Platforms Lead in Customer Satisfaction:
- Self-Directed Investment Platforms scored the highest across all dimensions, including meeting customer needs, value for money, quality of information, and customer support.
- These platforms are noted for their no-frills market positioning and technological edge, likely leading to better alignment with customer expectations.
- Wealth Managers Lag Behind:
- Wealth Managers consistently scored the lowest, particularly in offering value for money and the quality of information provided.
- High fees, poor investment performance, and lack of fee transparency are major concerns.
- Customers reported difficulty understanding the information provided, highlighting a need for improved communication and educational support.
- Retail Banks Perform Moderately:
- Retail Banks scored in the middle range across all dimensions.
- While more successful than Wealth Managers in meeting customer needs and offering value for money, banks face criticism for non-competitive interest rates and the closure of local branches.
- Strategic Implications:
- The survey underscores the need for Wealth Managers to innovate their product offerings, service model and refine fee structures and transparency to improve trust and demonstrate value.
- All subsectors should prioritize personalisation in their product designs and service models to better meet individual customer needs, aligning with trends observed in other industries, including balancing digital and human touchpoints.
- Institutions should focus on improving the quality of information provided to customers. Offering better educational support and clearer communication can help customers make more informed decisions, thereby improving satisfaction.
"These findings illuminate the path forward for financial service providers,” said Jon Causier, a Partner in Simon-Kucher’s Financial Services group. “Self-Directed Investment Platforms were perceived to deliver better value for money compared to other types of institutions, but need to take a more active role in educating less confident customers. Wealth managers must address fee transparency and invest in clearer communication to rebuild trust. For retail banks, balancing digital innovation with essential human interactions is key. By focusing on these strategic areas, financial institutions can enhance customer satisfaction and build stronger, more loyal relationships."
Complete study findings are available upon request.
*About the Study: The UK Financial Services Consumer Duty study was conducted in April-May 2024 by Simon-Kucher. The study surveyed 3,000 UK consumers across 28 companies, including representative quotas set for number of customers per institution, their age, gender, living area, education level, employment status & income level.
Janine McCormac
janine.mccormac@simon-kucher.com
About Simon-Kucher
Simon-Kucher is a global consultancy with more than 2,000 employees in 30 countries. Our sole focus is on unlocking better growth that drives measurable revenue and profit for our clients. We achieve this by optimizing every lever of their commercial strategy – product, price, innovation, marketing, and sales – based on deep insights into what customers want and value. With nearly 40 years of experience in monetization topics of all kinds, we are regarded as the world’s leading pricing and growth specialist.
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