WASHINGTON, DC: The American Bank Association has developed a new index to measure the overall satisfaction of banking customers.
WASHINGTON, DC: The American Bank Association has developed a new
index to measure the overall satisfaction of banking customers.
The Financial Client Satisfaction Index (FCSI), which will be unveiled
formally to PR executives at the October 23 - 27 meeting of the Bank
Marketing Association (an ABA affiliate), will provide a standardized
means of measuring a bank’s performance against local and national
’Just as banks review their financial numbers every quarter, we think
they should review their customer satisfaction index,’ said ABA director
of marketing Jerry Hergen-roeder. While comparisons with specific banks
will not be available, large banks will be able to measure the
performance of their branches.
The new index arrives at a crucial time for the banking industry, which
has traditionally been perceived as indifferent to its public image.
While consumers still must use banks for checking and savings accounts,
they have more investment options than ever before. Over the last two
decades, banks have experienced greater competition from the securities
industry, forcing them to work harder to secure customer loyalty and
To compile the index, consumers will be asked to complete a standardized
questionnaire either online, in person or through an ATM machine. The
questions gauge the customer’s opinion of the bank’s service, locations,
products and overall performance.
Though banks often conduct customer satisfaction surveys, Hergenroeder
said few have attempted to pit their performance against others. ’Our
hope is to have banks a little more balanced on what they’re doing and
to have the industry more focused on non-bank competition,’ he said.
The ABA has set a goal of 300 banks using the FCSI by August 2000. Eight
banks are already running preliminary tests of the system.