The perception of retail banking in Saudi Arabia has shown signs of improvement over the past year. However, there is still critical feedback from customers regarding service quality, product offerings, and digital interfaces, according to a recent study.
The Saudi Banking Sentiment Index, developed by PwC Middle East in collaboration with DataEQ, analyzed online consumer reviews and discussions, pinpointing prevalent dissatisfaction in areas such as customer support, credit card services, delayed transactions, and technological issues.
This sentiment analysis encompassed over five million social media posts related to seven leading retail banks in Saudi Arabia: Al Rajhi Bank, Alinma Bank, Al Bilad Bank, Riyad Bank, Saudi National Bank, Saudi Awwal Bank, and Banque Saudi Fransi. These posts underwent evaluation through advanced Crowd and AI technology to determine the “net sentiment” of customers towards these financial entities.
Compared to the previous year, the Saudi banking industry has seen an 11.3 percentage point boost in net sentiment, primarily due to a 9.1 percentage point increase in reputational net sentiment. This positive shift is largely credited to the banks’ community social initiatives, robust financial performance, and enhanced customer experiences. Nevertheless, service efficiency and response times remain significant areas of concern.
Customer Service and Product Issues
Among the concerns aired on social media, customer service was a prevalent topic, with a net sentiment of -82.1%, underscoring the urgency for improvement in this area across all banks, especially in issue resolution times.
Product offerings were also a contentious topic, with a net sentiment of -37.4%, as customers expressed dissatisfaction with debit cards and related products, mainly due to transactional issues and delays in receiving new cards.
The digital experience provided by banks also faced criticism, largely due to system failures and application downtime, leaving customers unable to carry out transactions. The overall net sentiment for the digital experience was recorded at -81.1%.
Positive Notes on Reputation
On a brighter note, the banks have been successful in building a good reputation, as indicated by the positive net sentiment in this area. This success is attributed to the banks’ involvement in community programs, educational initiatives, environmental efforts, and their role in enhancing fraud awareness and customer vigilance through social media.
The index serves as a dual-edged assessment of the Saudi banking sector, underscoring both the prevailing challenges and the potential for substantial improvements. According to Melanie Malherbe, Managing Director at DataEQ, while maintaining their reputable standing is important, banks should also focus on operational enhancements to deliver a comprehensive, customer-oriented experience.