Whether a mobile subscription, health insurance, or a bank account, for service providers a loyal customer is a good customer. If that holds for financial services in light of events around Credit Suisse and rising interest rates is open to debate.
«The Swiss are more likely to change doctors than banks» is the headline of a study on the behavior of Swiss consumers by the online Moneyland comparison service on the likelihood of them switching service providers. The survey (in German) asks whether customers switched their providers in the past ten years for certain products and services.
The results are clear. The inertia is particularly pronounced in the case of financial services. Regardless of whether it's a trading provider, mortgage, personal loan, supplemental pension pillar, private or savings account, less than 40 percent of respondents made a change.
Switching Can be Worthwhile
The responses for asset managers and primary banking services were particularly low at 36 percent, although consumers change credit card providers somewhat more frequently at 53 percent. Respondents were even more willing to change health insurance providers at 54 percent.
«Switzerland is still switch-shy when it comes to banks,» says moneyland.ch CEO Benjamin Manz. «From a financial perspective, switching would be worthwhile for most as conditions vary significantly from bank to bank.»
Replacement for Credit Suisse?
The current turmoil surrounding Credit Suisse is seen as a trigger for a greater willingness to switch. «It may well be that some customers are now questioning whether they want to remain loyal to their old house bank,» Manz continues.
If you compare the current interest rate environment over the past ten years, the situation has changed. Until last fall, there was hardly any reason to change accounts, since no bank was offering anything close to attractive rates for deposits.
But now the banks are showing renewed interest in attracting customer deposits with interest on deposits. With every SNB interest rate hike, many banks also pushed the rates they offer higher, albeit with a delay. So anyone taking the time to go looking for good offers today is likely to find something more suitable to their needs.
