Brits most likely to shop around for financial services

Customers in the UK are most likely to shop around for a financial bargain in the EU, reveals a survey by Datamonitor.

The survey, which looked at the behaviour of financial customers around Europe, found that almost all of branch managers at banks and building societies in the UK agreed that customers shop around for financial services products more than they used to a few years ago.

The branch managers surveyed believe that an increase in consumer awareness of financial services products and the growth in online banking are the principal reasons for customers shopping around more.

Maya Imberg, financial services analyst at Datamonitor, says: “Customers are increasingly looking at their financial services providers not as life-long partners, but as providers for a short span of time.

“As a result, lenders must put solid strategies in customer retention and acquisition in place if they want to succeed both in the short and long-term.

“Because recruiting new customers is so much more expensive than retaining existing ones, it is imperative for lenders to design an efficient and viable customer retention strategy.

“In the meantime, lenders must look to make the most of their acquisition strategies as an increasing number of customers are looking to change lenders.”