PwC Middle East’s latest report highlights the need for enhanced service, responsiveness, and cybersecurity in the face of increased digital engagement
A new report from PwC Middle East, in collaboration with DataEQ, reveals that UAE banks are facing increased customer scrutiny as online conversations about banking services surged by 10.7% from 98,045 in 2022 to 108,488 in 2023. The UAE Banking Sentiment Index, released on Monday, underscores the importance of improving customer service, response times, and digital security as social media becomes a primary mode of interaction between banks and their clients.
While promotional campaigns contributed to the rising volume of online conversations, the report pointed to operational challenges as key drivers of customer dissatisfaction. Despite strong reputational sentiment across banks, issues such as slow response times, inadequate staff training, and inefficient communication channels were highlighted as areas requiring immediate attention.
The report found that credit cards and loans were frequently mentioned in complaints, with issues ranging from card malfunctions to disputed fees and fraudulent transactions. Digital security emerged as a critical concern, as customers expressed frustration over perceived vulnerabilities in account protection. The study noted an increasing number of complaints about fraudulent activities, signaling an urgent need for banks to enhance their cybersecurity measures.
One of the most striking findings was the low response rate of banks to priority customer interactions on social media. The report revealed that banks responded to only 57.1% of priority conversations in 2023, a decline from the previous year. This suggests that many institutions are struggling to manage the growing demand for digital engagement, further impacting customer sentiment.
Mark Stanley, a partner in financial service consulting at PwC Middle East, emphasized the opportunity for banks to leverage digital engagement for real-time insights but warned that they must prioritize effective customer service. “Banks have a valuable opportunity to use unstructured feedback for real-time insights. However, they must focus on fair and effective customer service to meet expectations and improve satisfaction,” Stanley said.
DataEQ’s Managing Director, Melanie Malherbe, echoed this sentiment, cautioning that poor service improvements could have regulatory implications. The report found that over a quarter of customer feedback mentioned Treating Customers Fairly (TCF) outcomes, with performance and service being the most notable theme across the industry.
“This year’s index highlights the need for UAE banks to adopt a data-driven approach to address customer feedback and grievances. Investing in digitalisation alone is not enough; banks must enhance their responsiveness to social media interactions and integrate these efforts into broader customer care strategies,” Malherbe added.
As UAE banks navigate the rising tide of digital engagement, the report stresses the importance of a holistic approach that combines digital strategy, enhanced cybersecurity, and proactive customer service. PwC Middle East remains committed to helping banks reimagine their operations in this evolving landscape, powered by data, automation, and a digitally upskilled workforce.
The UAE banking sector’s ability to adapt to these challenges will be crucial in building trust, maintaining customer loyalty, and ensuring regulatory compliance in the digital era.
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