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Penalty fees and targeted marketing are helping banks to build up their profits
from consumers, a report by Group 1 Software claims.
Profit per customer at UK banks rose 13.3% last year to £75 from £66.20 in 2004,
the report found.
But it warned defection rates have risen to 17.5% from below 10% and banks will
have to look more closely at their quality of service to maintain profit growth.
According to Group 1, banks have the highest annual profit per customer figure
than any other UK industry - £75 per year compared with £59.10 for utility firms
and £43.20 for mobile phone companies.
Andrew Greenyer, vice-president of Group 1 international marketing, explained:
"This demonstrates their success in an ever competitive environment, where for
every bricks-and-mortar business on the High Street there is an online
equivalent.
"Good news for the UK economy but less so for the consumer.
"They're in business to make a profit, if they were making a loss, and it was
big enough, depositors would not be safe.
The study also found that UK customers were not the most lucrative for banks.
Banks in Italy and Spain make more money per customer - 131.60 euros (£89.94)
and 123.60 euros (£84.48) respectively - than High Street banks in the UK.
Source:
Getting Paid
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