LONDON, May 5, 2015 (GLOBE NEWSWIRE) -- Consumer satisfaction with credit cards has seen a steady increase since 2012, suggesting that the investments issuers have made in communicating the value and benefits of credit cards are paying off, according to UK Cardbeat®, Auriemma Consulting Group, Inc. (ACG)'s syndicated online research publication conducted in February 2015 among 442 UK cardholders. While the industry scored better for each of the factors measured, the improved satisfaction is mostly attributed to higher levels of trust in protecting information, and clarity surrounding credit card terms, signifying that recent efforts by banks have not gone unnoticed.
The ACG Industry Satisfaction Index (ISI) is a trended measurement of consumer satisfaction with credit cards, and has seen a stable rise over the past 4 years (69.6 in 2015 vs. 61.6 in 2012). While the industry posted an increase in each of the factors measured, the largest gains were among "I trust credit card companies to protect my personal information" (averaging 6.8 vs. 5.9 in 2012) and "Rules, terms and conditions are easy to understand" (5.6 vs. 4.4 in 2012). While this higher rating demonstrates progress, there is still substantial room for further improvement in transparency by banks, which the Financial Conduct Authority (FCA) has prioritised since early 2014.1 The organisation identified areas they believe are not working in the best interest of some consumers, and hope to build a detailed picture of the credit card market to identify which actions should be taken.
"Improving consumer education through easily-understood marketing has been a priority in the industry for quite some time, and it's encouraging to see consumers are recognising the efforts that have been made," say Marianne Berry, Managing Director of the Payment Insights practice at ACG. "Even before the FCA's most recent push, banks were already headed in the right direction."
The research shows additional signs of improved consumer knowledge, specifically regarding APRs. In 2012, less than one-quarter (22%) were able to indicate the interest rate on the outstanding balances on their most frequently used credit card. Over the past four years awareness has steadily risen, and the proportion has doubled to nearly half (45%). Among revolvers, the group most impacted by APRs, awareness is even higher, with 6 in 10 able to specify their interest rate.
Following a similar line of inquiry to the work the FCA is doing, ACG's upcoming issue of UK Cardbeat® will focus on opportunities for consumer education and improvement. "Providing notification is no longer enough; we need to ask cardholders what aspects of financial education they want more of. Efforts tend to be unsuccessful without a thorough understanding of what the consumer hopes to learn, and by what means we can successfully deliver this information. Our forthcoming research aims to unveil just that," says Berry.
Survey Methodology
The study was conducted online within the United Kingdom by an independent field service provider on behalf of Auriemma Consulting Group (ACG) in February 2015 among 442 credit card users ("cardholders"). The number of interviews completed on a monthly basis is sufficient to allow for statistical significance testing between sub-groups at the 95% confidence level ± 5%, unless otherwise noted.
About Auriemma Consulting Group
ACG is a boutique management consulting firm with specialised focus on the Payments and Lending space. We deliver actionable solutions and insights that add value to our clients' business activities across a broad set of industry topics and disciplines. Founded in 1984, ACG has grown from a one-man shop to a nearly 50-person firm with offices in London and New York. Visit ACG's website at www.acg.net. For more information, please contact Marianne Berry at +44 (0) 207 629 0075 or marianne.berry@acg.net.