- The Banking Supervision Department at the Bank of Israel has, for the first time, conducted a survey among customers of the banking system, to examine their satisfaction with the service provided to them by the banks where they manage their accounts. The survey will be conducted and published each year.
- The survey reflects the public’s perception of the quality of services received from the bank where they manage their account, compared to other banks.
- Publication of the findings of the survey will help to increase competition over service by encouraging the entire banking system to improve the banking services they provide their customers.
- The general picture emerging from the survey shows a reasonable level of customer satisfaction with the general functioning of the banks in Israel:
- Customer satisfaction varies between banks, and it is generally higher among the small and mid-sized banks than among the large banks.
- A comparison of how customers communicate with the bank shows that there is relatively low satisfaction with the services provided at the branches, and very high satisfaction with digital services and services provided through ATMs.
- There was relatively high satisfaction with the professionalism of the banks and with the attention they give. There was low satisfaction with the services offered by the banks at their own initiative to lower costs, and with creative solutions offered by the banks at their own initiative in accordance with the customer’s needs.
- Most customers perceive the bank as fair to one extent or another. Customers that do not perceive the bank as fair indicate the issues of fees and service as the main factors impairing their sense of fairness.
Supervisor of Banks Dr. Hedva Ber said that, “The Banking Supervision Department has placed an emphasis on the quality of service that the banks provide their customers, and is action through a variety of ways to incentivize the banking system to improve its service. I expect that measuring the quality of service and accessibility of information transparently will encourage competition through the improvement of service.”
The Banking Supervision Department at the Bank of Israel is in constant contact with customers of the banking system through a variety of channels, including the Public Enquiries Unit, which handles thousands of enquiries each year; the Restricted Accounts Section, which provides response to customers whose accounts are restricted; holding visits to bank branches; and more.
In order to obtain an in-depth, up-to-date, and broad picture of private customers’ satisfaction with the quality of service they are currently receiving from their main bank[1], the Banking Supervision Department conducted a survey among customers of the banking system. This survey will be conducted from now on once a year, and its main findings will be presented to the broad public.
The survey encompassed the following banks[2]: Hapoalim, Leumi, Mizrahi-Tefahot, Discount, First International, Mercantile, Yahav, Union, and Masad. As part of the survey, more than 2000 Internet-based interviews were conducted between July and August 2018, among a random representative sample of the Israeli population aged 18–74.
The following are the main findings of the survey (with greater detail provided in the attached Powerpoint presentation):
The general picture that emerges from the survey indicates a reasonable level of satisfaction with the general functioning of the banks in Israel. There is noticeable variance between the banks, and in general, satisfaction with the service provided at the branches is lower, while satisfaction with the use of digital means is better.
Households’ general satisfaction with the banks:
On average, 53.5 percent of customers who answered the survey would recommend that a friend or relative manage their account at the bank where they manage theirs.
Satisfaction with the various means of communication with the bank:
An average of about 47 percent of customers who answered the survey are satisfied with the waiting time until receiving service from a teller at their branch.
An average of about 69 percent of customers who answered the survey[3] are satisfied with the service provided through the bank’s call center.
An average of about 89 percent of customers who answered the survey[4] are satisfied with the level of service the bank offers them through automatic teller machines.
An average of about 92 percent of customers who answered the survey4 are satisfied with the level of service the bank offers them through its website.
An average of about 91 percent of customers who answered the survey4 are satisfied with the level of service the bank offers them through its cellular application.
It should be noted that the main means of communication with the bank are digital means and direct means (website/cellular application/telephone)—74 percent. For 23 percent of all customers, the main contact with the bank is through visiting the branch.
Perception of fairness
62 percent of all bank customers believe that their bank acts fairly toward them, and a further 25 percent partially believe that their bank acts fairly toward them.
11 percent do not believe that their bank acts fairly toward them. The main reasons for this are: high fees (the main factor), lack of personal service, high interest on overdrafts, closure of branches, lack of banks, and lack of telephone availability.
The findings of the survey were presented to the relevant people in the banking system, with the objective of showing them how their customers fee, and in order for them to draw the necessary conclusions. The Banking Supervision Department will continue making sure that there is improvement in the issues that require it in the area of banking service.
Appendices:
A. Methodology of the survey
Findings of the survey
Appendix A: Methodology of the Survey
The survey was conducted by the Rushinek Research Institute.
There were 2,032 Internet-based interviews, among a random representative sample of the Israeli population aged 18–74 connected to the Internet.
In order to keep the sample representative, strict gender and age quotas were maintained, as well as proper sectoral (general, ultra-Orthodox, Arab, and Russian) and geographic (North, Haifa, Sharon, Tel Aviv, Center, South, and Judea and Samaria) representation.
In order to increase the reliability of the findings by neutralizing random time deviations (a specific day on which the general consumer mood was irregular, the effects of advertising campaigns by the banks, etc.), the sample was split into four different subsamples that were conducted about a week apart. The data were gathered in July and August 2018.
Statistical cells larger than 59 respondents were shown. The maximum margin of error for the entire sample of about 2000 respondents is 2 percent. It should be noted that the margin of sampling error in cells of 59–100 respondents can in extreme cases reach 10–15 percent.
This study used an Internet sampling. In phone samplings or face-to-face interviews, there is greater concern that the interviewees may mislead the interviewer due to the interviewee’s desire to satisfy the interviewer, or out of concern that the answers would upset him. (For instance, there may be interviewees who avoid criticizing the quality of service they receive from their bank branch because, whether intentionally or not, they are worried that the terms they receive from the bank would be worsened due to the criticism.) In addition, the refusal rate in phone surveys is relatively high in Israel, so there is concern that the sample may not be representative.
It should be noted that there is less connection to the Internet among older and more conservative population groups, but even among them, most of the population is connected to the Internet, making this the optimal method for gathering data in this case.
The preamble to the questionnaire was built in such a way that the respondents cannot know on whose behalf the survey is being conducted, in order to prevent misleading the interviewer.
Misleading the interviewer may result from three main situations: when the respondent consciously or subconsciously wants to impress the interviewer; when the respondent consciously or subconsciously wants to fulfill the interviewer’s expectations; or when the respondent is consciously or subconsciously worried that when answering honestly, the information will be given to external parties and cause him damage.
Therefore, the preamble to the questionnaire does not mention the Bank of Israel, and the formulation legitimizes a broad range of respo
[1] The bank at which most current account activities are managed, including salary deposits.
[2] The Bank of Jerusalem was not included in the survey since the number of customers managing a current account at the bank is very low, both in absolute terms and in terms of the bank’s share of the banking system. Bank Otsar Hahayal was not included in the survey since it has been merged into First International Bank.
[3] The results include the following banks that had statistically significant results: Poalim, Leumi, Discount, and Mizrahi-Tefahot.
[4] The results include the following banks that had statistically significant results: Poalim, Leumi, Discount, Mizrahi-Tefahot, First International, and Yahav.