Clients unhappy at banks' service

Banking clients in France are increasingly dissatisfied with the service they receive,
a survey shows.

“The overall satisfaction level of clients remains very average,” a study carried out by business consultants Cosmobay-Vectis, banking information firm Publi-News and pollsters Toluna concludes.

“What's more, for the first time the number of ‘very satisfied’ customers has gone down significantly, by 4% from the year before,” it adds.

The quality of advice given and the commercial practices of banks are among the areas clients are least satisfied with according to the Cosmobay-Vectis study.

One of the firm’s directors, Marie-Frédérique Naud, said: “Banks should re-think their marketing strategy because people are getting more and more allergic to mail-outs, phone calls and other hard-sell methods.”

Account managers are criticised for not acting quickly enough and for lack of foresight.

Phone advisers are targeted for giving replies that are sometimes inaccurate and for difficulty in getting hold of the right person.

This is resulting in people having to go into their branches more, the study shows.

As last year, the Crédit Mutuel was considered the best-performing bank.

The Banque Postale was considered to perform well in some areas and Société Générale was praised for its internet site.

Variation

Another study, by Survey Sampling International (SSI), has highlighted the marked differences that exist in bank charges between banks and between geographical areas.

The SSI survey notes that, overall, French bank charges have decreased compared to last year but it highlights continuing inequalities.

It notes one person in two in France does not know what their bank costs them and says people concerned about purchasing power should be paying more attention to this.

The study compared 114 national and regional banking bodies around France and looked at average yearly costs for three groups - a small consumer, a typical working couple and a couple who are small-time stock market investors.

The average cost in total annual bank charges to each was €74, €243 and €674 respectively. Compared to 2007, each was down 4.4%, 8% and 6.5%. Some banks have slimmed down their charges.

The working couple have economised €10 at the Banque Postale and €40 at LCL. Among "mutualist" banks the best savings were made at the Crédit Agricole and Banque Populaire, due to the removal of internet banking charges, a lowering of the cost of a bankers' draft (cheque de banque) and, in some parts of France, an increase in the number of free withdrawals allowed from other banks' machines (retraits hors réseau).

The Crédit Agricole Lorraine had the most spectacular drop, reducing the bill for the second profile by 80% after suppressing what the study called its "exorbitant" account maintenance charge (frais de tenue de compte).

On the other hand the cost for the second profile rose by an average 15% at BNP-Paribas - due the the bank reducing the number of free retraits hors réseau.

The second profile cost rose by 60% at Caisse d'Epargne Ile-de-France, partly due to the company more than doubling its phoneline tariff from €0.15 to €0.34 a minute.

The study showed that differences between regions at the same banks have narrowed but remain significant.

For example, the second profile cost is €215 at Crédit Agricole Touraine but only €148 in Centre France.

From next year customers will be able to see more easily what they are being charged, because banks will have to produce an annual round-up of what charges they made.

This is being welcomed by consumer groups, who have been asking for the measure for some time.