The latest UAE Banking Sentiment Index, published by PwC Middle East in collaboration with DataEQ, reveals a notable decline in consumer sentiment towards UAE banks despite a marked increase in online conversations within the industry.
This year’s index analysed consumer sentiment towards seven major UAE banks. The volume of online conversations about the banks increased significantly, growing 10.7% from 98,045 in 2022 to 108,488 in 2023. This escalation in online conversation – while driven partly by diverse promotional campaigns – underscores the growing reliance on social media as a primary mode of interaction with banks in the UAE.
PwC Middle East noted in its report that while reputational sentiment remained strong across all banks, there were areas requiring further attention, particularly related to operational challenges in customer service and product performance. Key areas of improvement included response times, staff training, and communication channels, which were identified as contributing factors to customer dissatisfaction. Addressing these operational challenges will be essential for enhancing overall service quality and customer experience.
Credit cards and loans were frequently discussed topics and shown as areas that require further developments, due to issues such as card malfunctions, disputed fees, and fraudulent transactions. Digital security emerged as a major concern, with numerous complaints about fraudulent transactions and perceived compromised account security, highlighting the need for enhanced cybersecurity measures.
Mark Stanley, Partner in Financial Service Consulting at PwC Middle East said, “With the rise in digital engagement, banks have a valuable opportunity to leverage unstructured feedback for real-time insights. However, they must prioritise effective and fair customer service to meet consumer expectations and improve overall satisfaction.”
The study also found that banks responded to only 57.1% of priority conversations, a decline from the previous year, indicating challenges in managing the increased volume of social media interactions. This low response rate suggests that banks are challenged by the growing demand for social media engagement, further impacting consumer sentiment.
Melanie Malherbe, Managing Director at DataEQ, added, “In addition to impacting consumer sentiment, lack of service improvements can have potential regulatory implications. Just over a quarter of all sentiment-bearing mentions encompassed one of the six Treating Customers Fairly (TCF) outcomes. Of these mentions, Outcome five (TCF 5), performance and service, was by far the most notable conduct theme across the industry.”
Stanley added, “This year’s index highlights the need for UAE banks to adopt a data-driven approach to address customer feedback and grievances. Investing in digitalisation alone is not enough; banks must enhance their responsiveness to social media interactions and integrate these efforts into their broader customer care strategies.” He concluded: “PwC Middle East remains committed to helping organisations and industries reimagine doing business in the new normal, using technology that makes a difference, powered by the combination of digital strategy, data, automation, cybersecurity, a digitally upskilled workforce, and other connected areas of expertise.”
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