Banks Compete for Customers, But Fail to Engage New Ones
תומצת מתוך TheMarker על ידי baba
Israeli banks are reportedly offering incentives, like 500 shekels from Leumi to switch back from a digital competitor, to retain customers. However, the author, Doron Nir, experienced a lack of follow-up from digital bank One Zero when trying to open an account. Experts suggest increased banking competition is coming, but the real test will be improved customer service and clear conditions, not just financial bonuses. Consumers are urged to actively compare options and not remain with a bank out of habit.
הידיעה ב-5 שורות · תקציר של baba
- Leumi Bank reportedly offered a customer 500 shekels to return from a digital competitor, One Zero.
- Author Doron Nir received no callback from One Zero despite two attempts to inquire about opening an account.
- Many Israelis remain with the same bank for years due to fear and habit, despite competition.
- Increased banking competition is expected by 2027 with new regulations, but customer experience is key.
- Banks should focus on clear conditions and service, while consumers should actively compare options.
A report indicates that Leumi Bank offered a customer 500 shekels to close their account with the digital bank One Zero and return to Leumi. One Zero claims this offer was made. Leumi stated its retention offers are legal and not dependent on the competitor bank. The author questions whether this competition is for long-term conditions or simply to reverse a customer's decision to leave, suggesting such bonuses might just buy temporary peace.
Many Israelis remain with the same bank for years, often since their military service, despite changing cars, phones, and jobs. This inertia is attributed to the intersection of money and fear, where the familiarity of salary deposits, bill payments, and credit limits outweighs the discomfort of potential issues with a new bank. The psychological barrier of switching, even with technical ease, is significant.
In a personal anecdote, the author, Doron Nir, contacted One Zero twice over the past year to explore options but received no callback. He posits that a missed call, especially when a bank is trying to attract new customers, can undermine excellent marketing campaigns and technological promises. This experience highlights a potential failure in customer engagement, raising concerns about the level of support available once a customer joins.
Looking ahead, the author notes that 2027 might be a year of increased competition in banking, with the Competition Authority designating the five largest banking groups as a concentration group and new deposit regulations set to take effect in May. However, he stresses that these measures alone do not guarantee a better customer experience. The true test will be in the conditions offered post-joining and the clarity and comparability of these offers.
A Bank of Israel study found that a reform facilitating bank switching led to lower overdraft interest rates even for customers who did not switch, suggesting that the mere possibility of leaving can benefit those who stay. The author advises banks to focus on clear conditions, understandable offers, timely responses, and a sense of accountability rather than just offering cash incentives. He also urges consumers to actively compare, question, and seek explanations, viewing loyalty as a renewed choice rather than a permanent state.
לא אותו אירוע: ידיעות אחרות שחולקות עם הידיעה הזו אנשים, מקומות או נושא. רקע, תגובות והמשכים.
