SG financial services sector unable to maintain positive CX momentum of 2021

Singapore financial services firms have been unable to maintain the momentum in positive customer experience (CX)scores in 2021, with average scores dipping slightly in 2022, according to Forrester’s 2022 Singapore Customer Experience Index. Forrester’s Singapore CX Index benchmarks the CX quality of financial services brands across automotive/home insurance and banking industries. It is based on a survey of more than 2,500 consumers in Singapore across 11 brands, including six insurers and five banks.

According to Forrester’s CX Index, how an experience makes customers feel, through a collection of positive or negative feelings, has a bigger influence on their loyalty to a brand than effectiveness or ease. For instance, among customers of Singapore’s banking industry who felt confident about a particular brand, 74% plan to spend more with that brand and will advocate for it.

In contrast, customers who feel disappointed in a particular insurer, only 11% plan to spend more and only 12% will advocate for that brand.

Last year, the Singapore CX Index saw the highest level of positive change since its launch in 2018. Many brands, especially the insurance sector, which was heavily reliant on personalised service from agents, used the pandemic lockdowns as an opportunity to build CX equity with their customers. Unfortunately, most firms have been unable to maintain that trend in 2022. For example, the insurance sector saw their average score dip significantly, with five of the six brands losing ground. Similarly, with the exception of United Overseas Bank (UOB), the banking sector saw no significant positive change in their CX scores.

In a turnaround of last year’s performance, UOB jumped five points to offer the best CX of all the banking and insurance brands this year. The bank doubled down on digital experiences to deliver more emotionally positive interactions for its customers and improved its website and mobile app experiences.

Income Insurance (formerly NTUC Income) effected a spectacular reversal in its ranking in 2022, going from last to first amongst automotive/home insurers. In a year that saw the decline of CX quality for all its peers, the company improved its website and mobile app experience score.

“While financial services brands in Singapore were steadily improving their CX quality over the years, that has now plateaued and most are still offering just OK customer experiences,” said Amit Bhatia, senior analyst at Forrester. To achieve CX leadership, brands must dive deep into data to understand the key drivers that most influence customer loyalty to be able to prioritise their efforts, he said.

According to Forrester’s 2021 Singapore Customer Experience Index, Citibank was the only brand to improve its CX score in 2021 in the banking industry, displacing long-standing leader DBS Bank to rise to the top of the industry ranking after being at the bottom in 2020. This showcased an impressive turnaround effort. Citibank’s customers rated the brand highly for its mobile banking capabilities - the ability to resolve problems and issues quickly, maintaining transparent prices, rates and fees and the ability to keep customers’ personal and financial information secure.

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