Dubai: When it comes to banking, customers in the UAE are a pretty dynamic bunch.
Residents in this part of the world are less likely to stick it out with one bank compared to their peers in other markets due to stiff competition in the banking industry.
The UAE, home to at least 50 banks with more than 800 branches that are actively competing for customer attention, is considered the most competitive banking market in the GCC. Analysts say it is due to strong competition that customers are tempted to switch banks easily and maintain multiple accounts.
In comparison, banking customers in the UK, where a huge proportion of the market is concentrated with only five banking groups, tend to stick to one bank longer than they stick to a spouse or partner.
New research from Spanish bank Santander showed that more than half (58 per cent) of the respondents have been with their current account provider for more than a decade, with the average bank relationship lasting just over 16 years and one month.
According to Santander, one out of six people (17 per cent) have stayed with their bank for more than three decades, while nearly one third said the main reason they stayed is simply out of habit. In comparison, the average UK couple stays together for only 14 years and four months.
“Majority of the UAE banking customers do not have the same level of high loyalty compared to depositors in the UK,” noted Jad Rammal, director of measurement solutions at Ethos Consultancy. “[Customers tend to] look for better services and offers from the banks and there are many tempting offers and choices in the market today. There is stiff competition among the banks and it is easy to change [providers],” Rammal told Gulf News...
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