The Banking Supervision Department publishes the findings of its annual survey on household and business owner customer satisfaction with the service they receive from banks

To view the press release as a file

Supervision Department conducts surveys[1], the goal of which is to reflect customers’ perception of the quality of the services received from the bank in which they maintain their account, compared to other banks.

 

The goals of carrying out the customer satisfaction survey and publishing its findings are: to receive a picture of the situation from the perspective of banking system customers regarding the service provided by the banking system, to shine a spotlight on issues that require improvement, to provide an incentive to banks to improve the service provided to households, and to enhance the competition in the area of customer service.

 

Following are the main findings from the satisfaction survey among households for 2022, among other things compared with the findings of the survey conducted in 2021:

 

• Satisfaction from the use of banks’ Internet sites remains high (88 percent)
• Satisfaction from the use of banks’ applications remains high (88 percent)
• There was a decline in satisfaction with service provided via call centers (69 percent compared with 75 percent in the previous survey)
• There was a decline in satisfaction with the service provided at the branch (77 percent compared with 81 percent in the previous survey)
• There was no improvement in the perception of fairness vis-à-vis bank customers. (55 percent compared with 57 percent in the previous survey)

Following are the main findings from the satisfaction survey among self-employed, micro and small businesses[2] (hereinafter, the business owners) for 2022:

 

• Satisfaction from the use of banks’ Internet sites remains high (85 percent)
• Satisfaction from the use of banks’ applications remains high (89 percent)
• There was a decline in satisfaction with the ability to deposit cash or checks (67 percent compared with 70 percent in the previous survey). The main reason noted for the low satisfaction was malfunctions in ATM machines.
• The satisfaction with the bank’s availability was low (54 percent)
• The satisfaction with bankers’ familiarity with their business activities and needs was low (34 percent)
• The satisfaction with the level of accompaniment in making financial decisions was low (29 percent)

It should be noted that the availability and personal relationship were noted as the two material needs in the relationship with the bank.

 

Supervisor of Banks Mr. Yair Avidan said, “Banking system customers deserve to receive service that is high quality, fair, and at high standards, which serves as a main component of fair conduct. Within this framework, it is expected that the banking system ensure the availability of banking services and to provide high-quality, fair, and professional service, within a reasonable amount of time, and on all possible platforms. In recent years we have promoted a range of tools to strengthen the customer’s power, including a customer mobility system, the fees reform, the reform in mortgages, the reform in transparency of information and the ability to compare interest rates. The broader is the use of such tools, the stronger the customers’ power will be.

 

Alongside the various steps taken recently by the Banking Supervision Department in the area of service, we are in the process of formulating a new Directive that will deal entirely with the issue of banking service and that will establish obligating principles in this area. I expect that the banking system will already act to make required changes in the level of service in areas in which low satisfaction has been found, particularly, among others, the phone service centers, bankers’ availability, and the service in branches.

 

Following are selected findings from the satisfaction survey (the findings appear in more detail in the presentation attached to this notice):

 

Households’ overall satisfaction with the banks:

Approximately 56 percent of households who responded to the survey would recommend to a friend or relative to manage their account at the bank where they manage theirs, compared with 57 percent in the 2021 survey.

 

Approximately 52 percent of the business owners who responded to the survey would recommend to another business owner to manage their account at the bank where they manage theirs, compared with 54 percent in the 2019 survey.

 

 

Satisfaction with the various means of communication with the bank[3]:

 

An average of about 88 percent of households who responded to the survey are satisfied with the level of service the bank offers them through its website, compared with 90 percent in the 2021 survey.

 

An average of about 85 percent of business owners who responded to the survey are satisfied with the level of service the bank offers them through its website, compared with 87 percent in the 2019 survey.

 

An average of about 88 percent of households who answered the survey are satisfied with the level of service the bank offers them through its mobile application, compared with 90 percent in the 2021 survey.

 

An average of about 89 percent of business owners who answered the survey are satisfied with the level of service the bank offers them through its mobile application, the same as in the 2019 survey.

 

An average of about 83 percent of households who answered the survey are satisfied with the level of service the bank offers them through automated teller machines, compared with 84 percent in the 2021 survey.

 

An average of about 67 percent of the business owners who answered the survey are satisfied with the possibilities for depositing cash or checks that the bank offers its business customers[4], compared with about 70 percent in the 2019 survey. The main reason given for the low satisfaction was malfunctions in the ATM machine (29 percent).

 

Approximately 77 percent, on average, of households who answered the survey are satisfied with service they receive at their branch, compared with 81 percent in the 2021 survey.

 

Approximately 67 percent, on average, of the business owners who answered the survey are satisfied with service they receive at their branch, compared with 68 percent in the 2019 survey.

 

An average of about 69 percent of household customers who answered the survey are satisfied with the service provided through the bank’s call center, compared with 75 percent in the 2019 survey.

 

An average of about 68 percent of business owners who answered the survey are satisfied with the telephone service that the bank provides them. This is the first time this question was included in the survey.

 

An average of only about 46 percent of households who answered the survey are satisfied with the waiting time until receiving service from a teller at the branch, compared with 48 percent in the 2019 survey.

 

An average of about 54 percent of business owners who answered the survey are satisfied with the availability of the business bankers, compared with about 56 percent in the 2019 survey.

 

 

The main interface with the banking system

The survey of household customers points to a continued trend of decline in visiting the branch as the main communication channel of the customers with the banks. In the 2021 survey, 8 percent of the customers noted that visiting the branch is the main means of contact with the bank, while in the 2022 survey only 7 percent of customers noted that it was their main means.

 

The survey of business owners indicates that only 3 percent of the customers responded that visiting the branch is their main means of contact with the bank.

 

The main channels of communication for contact with the bank continue to be digital channels, with the bank’s application the leading means of communication for contacting the bank.

 

 

Perception of fairness

 

Of the household customers, 55 percent believe that their bank acts fairly toward them, compared with 57 percent in the 2021 survey. These findings indicate low satisfaction in the issue of fairness. The Banking Supervision Department sees the utmost importance in integrating a culture of fairness between the bank and its customers, which is reflected in, among other things, the service provided to banking systems customers. Therefore, at this time a new Proper Conduct of Banking Business Directive is being compiled, which will deal with the issue of fairness toward customers in the banking system and will determine principles in this area.

 

The Banking Supervision Department will continue to follow and verify that the banking system improves its conduct in areas in which the survey showed low satisfaction from banking customers.

 

 

Appendices:

1. Methodology of the survey

Findings of the survey—via attached presentation

 

 

 

 

 

Appendix A: Methodology of the Survey

 

The surveys were conducted by the Rushinek Research Institute.

 

Among households, there were 2 parallel samples.

 

In the first sample, there were 2,002 respondents, serving as a random national representative sample of the Israeli population aged 18–74 connected to the Internet.

 

In the second sample, there were 61 telephone surveys, in order to complete the representation of the population aged 65–74 that is not connected to the Internet.

 

In order to keep the sample representative, strict gender and age quotas were maintained, according to their proportion in the population (based on Central Bureau of Statistics data) as well as representation in two additional parameters: sectoral (general, ultra-Orthodox, Arab, and Russian) and geographic (North, Haifa, Sharon, Tel Aviv, Central, Jerusalem, South, and Judea and Samaria).

 

Out of all the respondents, 2,042 respondents, who reported that they have a private, single/main current account at one of the banks, continued to the full questionnaire.

 

In order to increase the reliability of the findings by neutralizing random time deviations (a specific day on which the general consumer mood was anomalous, 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 was collected August 2–30, 2022.

 

In the business owner survey, there were 2,605 respondents, serving as a random national representative sample of self-employed, micro and small business owners (employing up to 20 workers), connected to the Internet.

 

Out of all the respondents, 2,000 respondents, who reported that they have a private, single/main current account at one of the banks, continued to the full questionnaire.

 

In order to increase the reliability of the findings by neutralizing random time deviations (a specific day on which the general consumer mood was anomalous, 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 was collected between August 29 and October 3, 2022.

 

The preamble to the questionnaire was built so that respondents cannot know which entity is behind the questionnaire, in order to avoid 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 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 responses.

 

In the research report, statistical cells of at least 60 respondents were presented. For example, if one of the banks had less than 60 customers, the findings of the customers’ responses for that bank were only calculated as general averages and were not presented separately.

 

[1] Notice regarding the 2018 survey:

 https://www.boi.org.il/en/NewsAndPublications/PressReleases/Pages/1-1-19.aspx

Notice regarding the 2019 survey:

https://www.boi.org.il/en/NewsAndPublications/PressReleases/Pages/2-12-19.aspx

Notice regarding the small business survey:

https://www.boi.org.il/en/NewsAndPublications/PressReleases/Pages/26-1-20.aspx                                  

Notice regarding the 2021 survey:

  https://www.boi.org.il/en/NewsAndPublications/PressReleases/Pages/13-3-22.aspx

 

 

[2] As noted in Footnote 1, and in total up to 20 employees.

[3] The percentage in this section reflects those who chose the response “Satisfied” or “Very satisfied”.

[4] Through ATMs, designated automated machines for business activity and more.