Relationships between banks and customers are on the decline, with the reliance of lenders on big data making people feel like numbers, a new survey of Australians has revealed.
The Pepper money survey of 1,002 adults found 44 per cent did not feel their bank had their interests at heart, while 42 per cent said their bank did not understand their financial goals. A worrying 63 per cent withhold information from financial institutions.
The top reasons for customer alienation were fees, the bank’s focus on business profits, a lack of understanding about real life situations, a sense banks are out of touch and a feeling that customers were not valued.
“In the past, managers were empowered, they had lending authority and responsibility for making decisions on behalf of a branch,” Mr Rehayem said. “Today, when you apply for a loan, it is assessed at a central service centre where the decision is made by an algorithm or computer … banks have lost the human touch and empathy towards any form of credit assessment.”