KPMG analyzes customer service in Russian banks | KPMG | RU

KPMG analyzes customer service in Russian banks

KPMG analyzes customer service in Russian banks

KPMG experts surveyed the major Russian banks and concluded that even in today's tough conditions the customer focus actually generates additional value.

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In times of crisis, the banking system is among the first to be affected by negative developments. The volatility of financial markets in November-December 2014 resulted in an outflow of over 20% of deposits, while an increase of the key interest rate by the Central Bank up to 17% p.a. made credit products far less appealing. However, in light of the impossibility to raise external financing because of the international sanctions imposed on Russia, customers are compelled to adapt to the current conditions and it is vital for the banks to retain their deposits. In this paradigm, the quality of relations (especially long-term ones) between the bank and its customers becomes crucial.

Although the majority of the leading Russian banks have fully or partially set up a customer data collection and analysis system, translation of these deliverables into life is still missing. In more than half of all cases, banks fail to include their evaluated customer-related deliverables into the employee incentive system. That is possibly why in times of turbulence banks so quickly forget about the importance of building up long-term relations with their customers.

As for value creation, our survey revealed that banks that use a customer value management system or its separate elements generally achieve better financial performance compared to those that use such instruments (for example, dynamic data collection tools, "next best offer", individual pricing, etc.) to a limited extent or do not use them at all.

It is important to note that KPIs (return on capital, return on assets) of the banks that implemented elements of the value management system are twice as much or more.

At the same time, such system may be of a moderate complexity: data collection is mostly effective if done at least once per month, while a popular microsegmentation topic has not yet gained confirmation as the best performance is achieved by banks having not more than five segments.

As for relations with customers, it is important to note that banks are paying little attention to developing relations with their existing customers to provide them with several offerings (for example, by way of cross/additional sales), while giving high priority to attracting new ones. As a rule, the existing customers are offered one or two additional products at best.

At the same time, most respondents noted that they acknowledge importance of developing relations with the existing customers and analyze personal data both for selling new products and for managing customer outflow.

In summary, we note that the processes of building up a customer value management system and motivating bank employees to establish and develop long-term relations prove to be effective in Russia, and banks are recommended to carry out such activities even in a period of financial turbulence.

The report is available here (in Russian only).

About KPMG in Russia and CIS

KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 155 countries with more than 162,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

KPMG has been operating in Russia more than twenty years. For the last years KPMG in Russia and the CIS has been one of the fastest growing practices in KPMG worldwide.

In the CIS, KPMG now has offices in Moscow, St. Petersburg, Yekaterinburg, Kazan, Nizhny Novgorod, Novosibirsk, Rostov-on-Don, Krasnoyarsk, Perm, Almaty, Astana, Atyrau, Bishkek, Kiev, Lviv, Yerevan, Tbilisi and Baku, employing together over 4,000 people.

Media contacts

For any media enquiries or interview requests contact our media team at PR@kpmg.ru or Sabina Kasparova, Manager, PR & Communications, KPMG in Russia and the CIS, at +7 (495) 937 4477 (ext 14264), +7 (968) 6911037 or sabinakasparova@kpmg.ru.

© 2017 KPMG Audit LLC, the Mongolian member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

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