Mobile Banking Surges in China; Relationship Managers Remain Critical, J.D. Power Finds
Bank of Communications Ranks Highest in China Retail Banking Customer Satisfaction
BEIJING: 27 July 2017 — Mobile banking has witnessed a surge of usage in China with its penetration reaching 78% in 2017, up 26-fold from just 3% in 2011, and Chinese retail bank customers now use mobile banking more than 25 times a year, on average, according to the J.D. Power 2017 China Retail Banking Satisfaction StudySM (RBSS), released today.
Customers who use mobile are more satisfied (overall satisfaction score of 807 on a 1,000-point scale) than those who do not use mobile (775). This is especially true for VIP customers (834 among those who use mobile vs. 778 among those who do not use mobile). VIP customers are respondents who indicate having VIP accounts in their evaluated banks.
VIP customers also tend to use mobile banking more frequently. The study shows that 11% of VIP customers conduct financial business each day on a mobile app, twice that of non-VIP customers. Nearly half (48%) of all VIP customers manage their finances on a mobile banking app every week.
“The new, open and more efficient way of conducting banking and investment transactions through a mobile app has rapidly gained momentum in recent years,” said Winston Xue, general manager of financial services at J.D. Power China. “Our study has shown that mobile ties positively to banking experience and loyalty.”
The study also indicates that satisfaction is substantially higher among retail banking customers who have a relationship with a banking manager (837) than among those who do not (794).
“While more transactions are migrating toward digital channels, relationship managers remain critical in engaging existing clients and driving new acquisitions,” Xue said.
Six in 10 (62%) customers who have a relationship manager have seen their investments increase in the past 12 months, compared with 41% of those who do not have a relationship manager. Nearly half (49%) of customers who have a relationship manager say they “definitely would” recommend their bank, while only 35% of those without a relationship manager say the same.
The following are additional findings of the study:
China’s mobile banking usage is much higher than in such other markets as the United States (30%), Canada (44%) and Singapore (41%), according to J.D. Power studies conducted in those markets. In China, mobile is used mostly by non-VIP customers for transactions such as checking account information, deposits and bill payments. VIP customers use more investment and financial related features.
Having a relationship manager and using a robo-advisor are not mutually exclusive. Among customers who have a relationship manager, 56% use a robo-advisor of the mobile app and 93% find robo-advisors to be useful.
Bank of Communications ranks highest in retail banking customer satisfaction in China for a fourth consecutive year, with a score of 848. HBSC, Minsheng Bank and Ping An Bank rank second in a tie with a score of 834.
About the study
The China Retail Banking Satisfaction Study, now in its ninth year, measures customer satisfaction with their bank across six factors: transactions; product offerings; account information; facility; fees; and problem resolution. Additionally, the study examines performance improvement initiatives designed to drive customer loyalty and advocacy.
The study includes 24 banks operating in China and is based on responses from 11,585 retail banking customers in 37 cities. The study was fielded from March through May 2017.
J.D. Power is a global leader in consumer insights, advisory services and data and analytics. Those capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power is headquartered in Costa Mesa, California, and has offices in Shanghai, Beijing, Tokyo, Singapore, Malaysia and Bangkok serving the Asia Pacific region. J.D. Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. For more information, please visit china.jdpower.com or stay connected with us on J.D. Power WeChat and Weibo.
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