A third of UK consumers would change companies if their financial services providers move operations...
A third of UK consumers would change companies if their financial services providers move operations offshore, according to research from management consultant Troika.
However, while a total of 33% of consumers said they would switch provider if their bank or insurer announced it was moving some of its operations to lower-cost offshore locations such as India, only 4% have actually done so as a result of such announcements thus far.
Among the report's other findings, 41% of respondents said they would be prepared to pay more for a financial services product offered solely from the UK. Director at Troika Andrew Veal said: "On the face of it, given the traditionally high levels of inertia in financial services, for a third of consumers to say they would switch if their provider announced a move offshore is a dramatically high number. However, the relatively low levels of awareness of having dealt with an offshore operation show that, when done well, it can be successful.
"The fact that only 4% of customers have ever actually switched in light of offshoring should be good news to an industry which has little choice given the pressures it faces."