There is an international bank (US based) that has been operating in Asia for the past 10 years. However, recently it has noticed that a lot of its customers are leaving the bank and using services of other local/regional banks. Why might this be the case?

Question

Accepted Answer

Customers leaving a US-based international bank in Asia for local/regional banks.

Possible reasons could be lack of understanding of local market and culture
Inability to provide personalized services to customers
Higher fees and charges compared to local/regional banks
Competition from other international banks with better offerings
Negative perception due to scandals or controversies involving the bank
Lack of innovation and adoption of new technologies
Language barriers and communication issues
Limited branch network and accessibility
Preference for local/regional banks due to familiarity and trust
Economic and political factors affecting customer behavior

Accepted Answer

Qs to ask.. is this a retail, wholesale or investment bank. The answer will depend on the type of customer.

For wholesale bank, customer require in-country product and network depth. But pricing is most important factor overall. Has the bank been pricing (Libor+) itself out of market? Is there a departure of a highly networked leader? Are there any local government or social challenges for local corporates to reduce exposure?

For retail bank, branch reach, digital banking quality, branch/contact centre CX are other factors to consider. Plus of course, local government or social challenge could easily manifest.

For investment bank, departure of dynamic, networked leader is the biggest hurdle, followed by trust.

Accepted Answer

Bcoz of better promotions n offers

Trust issue mostly people believe in somebody talk to them in their language that should hire people from Asian community

Better interest rate or other services provided by their rival bank

Customer may be not getting proper updation or bank policy

International bank need to pay extra Taxes as compare to local bank n their charge little higher fees as compare to regional or local bank

There is an international bank (US based) that has been operating in Asia for the past 10 years. However, recently it has noticed that a lot of its customers are leaving the bank and using services of other local/regional banks. Why might this be the case?

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