Thursday, October 17, 2019
How can retail banks in UK restore customer confidence and improve Dissertation
How can retail banks in UK restore customer confidence and improve customer satisfaction after the financial cri - Dissertation Example action and customer confidence. It gathers the multiple determinants of such problems based on several surveys involving about 10,000 respondents made of mostly customers of banks or households, some bank Branch Managers, and some bank employees. What will provide a way to improve customer satisfaction and customer confidence must be the creative initiative of all the UK Retail Banks. Since, it has been recovering from the economic crisis (in terms of profitability) while its customers do not enjoy the results of that recovery, the UK Retail Banks should identify the specific needs of customers, comply with FSA regulations, and offer customers a way to be a part of the economic recovery. That is aside from doing their services properly. After all, it was discovered that the customers were not the cause of decline in the economic variables. Speculations and lack of knowledge concerning the risks involved in the Capital Market were found to be the root cause of the most recent recessio n. Unfortunately, it appeared that the customers were the people castigated for the economic decline, while the banks that speculated were bailed out by government funds. Credit became hard to find for customers of banks. Terms and conditions became difficult to accept. Now the banks are recovering while the general public are still struggling to be treated fairly by the banks. How to revive customer satisfaction can be answered by the provision of the needed products and services for customers who need them in order to grow or be revived economically. There are many determinants of customer satisfaction. All of them point to one thing. Be concerned with the peoplesÃ¢â¬â¢ needs and supply their needs properly. Chapter I Introduction In order to revive the UK economy during the recession period in 2008, the Bank of England implemented Quantitative Easing for its monetary policy effective 2009. In the month of March 2009, ?75 billion was added to the money supply when BoE printed ca sh to purchase Gilts (government bonds). This was followed by ?50 billion in May 2009; another ?50 billion in August 2009; and the final ?23 billion in November 2009. These amounts were anticipated to reach the households eventually so that the consumer spending would increase and the market was supposed to be revived. (BoE, 2009) Unfortunately, the money got stuck in the banks (Inmam, P. 2011). The appended Figure 1 shows how the velocity of transfer from banks to the corporations, SMEs, and households turned out to be very slow. When BoE researched for the reason why, it was reported that the banks had to rebuild its liquidity first with the total of ?200 billion released.
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