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Swedish big banks pushing out homeowner as poor business models anger mortgage owners

Monday, 01 October 2012
Swedish private customers, not companies, are fleeing their big banks. They are dissatisfied with the services and their inability to afford their bills because of persistent increased in interests on home loans, a report from the Swedish Quality Index show.

The Swedish major banks, Handelsbanken, Nordea, SEB and Swedbank have been hardest hit with faster falling customers over last year.

Customer satisfaction is measured on a scale from 0 to 100, where a high number means more satisfied customers. Nordea drop from 70.7 on 100 last year to 66.4 on 100 this year. Swedbank plummeted from 70.2 to 66.7, Handelsbanken 77.8 to 75.2 and SEB from 69.5 to 67.7 on 100.

Best rated banks in terms of customer satisfaction is Länsförsäkringar Bank, which still falls from 80.1 to 79.5 but remain among the highest.

The cause of the customer discontent stems from a crisis of confidence between the banks and the retailers, according to Sara Pärssinen, analyst at Swedish Quality Index.

There is fall in communication between banks and customers as the banks have been accused of not being able to create understanding with their customers and to explain to them why the need this very large profits, for example.

The 2012 quality index, based on 13,000 telephone interviews, shows that more and more people are opting out of the big banks, and shopping in several different smaller banks.

One reason is that all the major banks, except Handelsbanken, have experienced reduced accessibility. Branch offices are closed, cash management has been abolished, and private customers have been referred to the internet. Smaller banks have gone the opposite direction and try instead to approach customers in a more traditional way according to Sara Pärssinen.

These smaller banks are also investing profits in the area and taking more care to care for their customers. Länsförsäkringar Bank also gets very high marks on that line of service.

In the case of business customers, however, both Nordea and Handelsbanken remained at essentially the same level, while SEB and Swedbank scores higher compared to last year.
By Scancomark.com Team

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