The new research by bridging lender, Market Financial Solutions found that 25% of investors, who had investment portfolios valued at £10,000 and above, have switched financial service providers in the last 12 months. This number rises to 55% for millennials – those aged between 18 and 35.
When asked why, 40% of investors said their banks have been taking longer to respond to requests since the beginning of the pandemic. As a consequence, 35% have lost confidence in their bank’s ability to assist with their financial goals. Again, this number is higher for millennials – 47% of young investors admitted to losing confidence.
One of the key frustrations identified by investors was the standard of customer service provided.
Two-thirds of investors fear that COVID-19 has made banks over-reliant on technology when it comes to engaging with their customers, removing the human touch. Moreover, 61% admitted that they prefer face-to-face interactions over digital conversations when communicating with a financial services provider.
Elsewhere, MFS’s research found that the pandemic has permanently changed what investors now look for in a financial services provider – with 34% thinking that this was the case.
Paresh Raja, CEO of MFS, said: “Nearly 12 months since the beginning of the first lockdown and financial firms are still struggling to adapt to the conditions brought on by the coronavirus pandemic. Customers are clearly frustrated, with today’s research showing that a significant number of investors are no longer confident in their bank’s ability to support them.
“While the end of COVID-19 could be in sight, the reality is that things will not return to the way they were pre-pandemic. Investors want to work with financial organisations that can deliver a personalised and tailored service, not to mention support and guidance during these uncertain times.
"That’s why all the organisations that make up the financial services sector need to ensure they are recognising and responding to the changing demands of their clients. If not, they run the real risk of losing customers to rival firms.”
