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Survey: Banks Pick Wrong Channel to Remind UK Consumers of Late Payments
FICO survey shows credit grantors prefer letters but consumers prefer SMS
LONDON — November 21, 2017
"Stop sending us letters when we pay late and start texting us." That was a resounding message from UK consumers in a new survey on lender communications by Silicon Valley analytics firm FICO. While 31 percent of respondents said credit grantors send late-payment reminders via the mail, making it the most-used channel, only 14 percent prefer that channel. The top preference was for SMS messages (42 percent), with email following at 23 percent.
More information: https://www.youtube.com/watch?v=3Ypj5JcfS18&feature=youtu.be
"Consumers consistently tell us that when it comes to late payment reminders and other debt-related messages, their banks are not communicating with them in the ways that they would prefer," said Steve Hadaway, general manager for Europe, the Middle East and Africa at FICO. "The UK does seem to be ahead of the US in terms of digital transformation, as some 28 percent of UK respondents said their bank uses SMS to communicate with them, compared to 15 percent in the US. But UK and US banks are both pretty far from matching channels with customer preferences."
The survey also found that:
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