In a rapidly evolving banking landscape, the banks that prioritize customer service, both online and offline, are emerging as the top choices for corporate and individual customers in 2023. The recent list of the World’s Best Banks, curated by Forbes in partnership with market research firm Statista, sheds light on this trend, highlighting not just the giants in the industry but also smaller, customer-centric banks that have managed to carve out a significant place in the hearts and wallets of customers globally.
A Focus on Customer Service
“It’s all about good customer service that offers the customer the lowest loan rate, or the best deposit rate, with the convenience of digital access—but at the same time, having a physical branch to visit, especially to resolve any problems with your account,” says RBC Capital Markets Managing Director Gerard S. Cassidy.
The survey, which garnered responses from over 48,000 individuals across 32 countries, assessed banks based on various parameters including general satisfaction, trust, digital services, and customer service. A noteworthy point is that only 415 banks, constituting four percent of banks globally, met the criteria to be featured on the list.
Surprising Leaders in the Banking Sector
Japan saw digital disruptors SBI Sumishin Net Bank and Sony Bank taking the top spots, showcasing the rise of digital banking platforms. In Australia, the customer-owned Newcastle Permanent led the list, while Belgium saw Keytrade Bank, initially an online market trading leader, evolving to become the top choice for customers.
Israel’s leader, Pepper, carved its niche by catering to individuals preferring to conduct their banking operations primarily through their mobile phones. These examples underscore a global trend where banks that have focused on digital innovation while maintaining a customer-centric approach have risen to prominence.
Regional Focus: A Winning Strategy
Germany’s top bank, Sparda-Bank Hessen eG, stands as a testament to the success of a regional focus. With assets just under 10 billion euros and a history dating back to 1903, the bank has fostered deep roots in the Hesse region, supporting local causes and focusing on sustainable investment options.
“We try to give the best financial services and consultancy possible,” Sparda CEO Markus Müller says. “Furthermore, we develop digitization and focus on sustainability in our financial services.”
USAA: Tailored Services for the Military Community
In the U.S., the USAA Federal Savings Bank emerged as the leader, distinguishing itself with services tailored for the military community and their families. Despite having no physical branches, the bank offers a range of benefits including free access to a vast network of ATMs and early paycheck availability, a boon for military personnel who are often on the move.
“USAA’s mission is to facilitate the financial security of the military community,” says Roger Wildermuth, the company’s director of public relations and corporate communications. “We do that by knowing our members better than anyone else.”
Josh Rodriguez, a U.S. Army veteran, praises the bank’s quick response time and U.S.-based customer service, a sentiment that echoes the bank’s commitment to understanding and serving its members better.
The Road Ahead for Banks
As the banking sector navigates through turbulent times, experts emphasize the importance of integrating banking experiences seamlessly into customers’ routines to retain their trust and loyalty.
“Considering the current economic climate, the primary goal of any transformation agenda for banks is to improve customer service and, in turn, aid a stable economy,” says Parijat Banerjee, global head of Business Services at Latentview Analytics.
Methodology
To compile the list, Statista surveyed customers in 32 countries, evaluating banks on general satisfaction and the likelihood of recommending the bank, among other criteria. The banks needed at least 250 customer ratings to qualify for the list, ensuring a comprehensive view based on substantial feedback.
Banks and the Repo Rate
Repo rates, or repurchase rates, play a crucial role in the banking sector and the broader economy. Banks often depend on short-term borrowing to maintain liquidity and fund their operations. The repo rate is essentially the interest rate at which central banks lend money to commercial banks in the case of any shortfall of funds, using government securities as collateral.
When the central bank wants to infuse liquidity into the banking system, it lowers the repo rate, making borrowing cheaper for commercial banks. Conversely, when it wishes to reduce liquidity in the system to curb inflation or stabilize the currency, it increases the repo rate, making borrowing more expensive. This rate influences the interest rates that consumers see for various banking products, including loans and mortgages.
Commercial banks often mirror the changes in repo rates in their lending rates to customers. Lower repo rates can lead to lower interest rates for consumers, potentially stimulating spending and investment. Conversely, higher repo rates might deter borrowing due to the higher cost of loans, possibly slowing down economic activity.
It’s essential to note that repo transactions are also used between commercial entities, outside of central bank operations. They are a vital part of the financial markets, providing a mechanism for borrowers to access short-term funding, often overnight, by selling securities with a commitment to repurchase them at a later date at a higher price, the difference reflecting the interest on the loan. This mechanism allows for the fluid movement of funds within the financial system, supporting the day-to-day operations of financial institutions. The repo market, therefore, holds considerable influence over the interest rates in the economy and, consequently, the economic activity at large.
Understanding the dynamics of repo rates gives insight into how central banks manage economic cycles and maintain financial stability in a country. It’s a balancing act that involves promoting growth while keeping inflation in check, helping to foster a stable economic environment.
Top 50 Best Banks 2023 in the World
This is the most recent data for top banks for 2023.
| Current Rank | Previous Rank | Bank | Assets US$ (Millions) | + or – (local currency) | Capital US$ (Millions) |
|---|---|---|---|---|---|
| 1 | 1 | Industrial & Commercial Bank of China Limited | 5518390.00 | +8.02% | 111515.00 |
| 2 | 2 | China Construction Bank Corporation | 4746849.00 | +10.14% | 39227.00 |
| 3 | 3 | Agricultural Bank of China Limited | 4560950.00 | +9.43% | 67448.00 |
| 4 | 4 | Bank of China Limited | 4192746.00 | +12.15% | 46189.00 |
| 5 | 6 | JPMorgan Chase Bank National Association | 3306982.00 | +9.31% | 2028.00 |
| 6 | 5 | BNP Paribas SA | 2982191.00 | -2.41% | 29825.00 |
| 7 | 7 | China Development Bank | 2693650.00 | +2.80% | 66094.00 |
| 8 | 10 | Bank of America National Association | 2519525.00 | +11.54% | 3020.00 |
| 9 | 9 | MUFG Bank Ltd. | 2359275.00 | +0.00% | 15536.00 |
| 10 | 8 | Crédit Agricole SA | 2347717.00 | -2.51% | 9905.00 |
| 11 | 11 | Sumitomo Mitsui Banking Corporation | 2069704.00 | +0.00% | 16072.00 |
| 12 | 18 | Postal Savings Bank of China Co Ltd | 1975037.00 | +13.55% | 22006.00 |
| 13 | 12 | JAPAN POST BANK Co Ltd | 1910227.00 | -5.98% | 28700.00 |
| 14 | 20 | Bank of Communications Co Ltd | 1830357.00 | +11.68% | 11652.00 |
| 15 | 13 | Banco Santander SA | 1806485.00 | -2.46% | 9814.00 |
| 16 | 17 | Wells Fargo Bank National Association | 1779504.00 | +0.66% | 519.00 |
| 17 | 16 | BPCE | 1716136.00 | -3.37% | 31968.00 |
| 18 | 14 | Mizuho Bank Ltd | 1714129.00 | -5.03% | 11513.00 |
| 19 | 19 | Citibank NA | 1669227.00 | +0.46% | 2851.00 |
| 20 | 15 | Société Générale | 1657756.00 | -6.54% | 1208.00 |
| 21 | 21 | Deutsche Bank AG | 1498760.00 | -7.91% | 5989.00 |
| 22 | 24 | China Merchants Bank Co Ltd | 1451171.00 | +13.29% | 3957.00 |
| 23 | 22 | Barclays Bank PLC | 1432339.00 | -0.40% | 3167.00 |
| 24 | 23 | The Toronto-Dominion Bank | 1408808.00 | +0.81% | 26167.00 |
| 25 | 26 | Royal Bank of Canada | 1379392.00 | +13.09% | 19676.00 |
| 26 | 29 | Industrial Bank Co Ltd | 1349814.00 | +11.61% | 12021.00 |
| 27 | 27 | Shanghai Pudong Development Bank | 1276657.00 | +4.82% | 4605.00 |
| 28 | 28 | The Hongkong and Shanghai Banking Corporation Limited | 1269615.00 | +4.52% | 22093.00 |
| 29 | 31 | China Citic Bank Corporation Limited CNCB | 1261928.00 | +9.67% | 7678.00 |
| 30 | 25 | Intesa Sanpaolo SpA | 1210111.00 | -1.71% | 11415.00 |
| 31 | 34 | The Agricultural Development Bank of China | 1142906.00 | +0.00% | 20376.00 |
| 32 | 35 | UBS AG | 1116145.00 | -0.82% | 338.00 |
| 33 | 33 | China Minsheng Banking Corporation Limited | 1090892.00 | +2.45% | 6869.00 |
| 34 | 30 | ING Bank NV | 1076891.00 | -6.45% | 594.00 |
| 35 | 32 | UniCredit SpA | 1037672.00 | -9.28% | 23923.00 |
| 36 | 40 | The Bank of Nova Scotia | 991417.00 | +3.51% | 19677.00 |
| 37 | 41 | China Everbright Bank Co Ltd | 926035.00 | +12.60% | 8478.00 |
| 38 | 110 | La Banque Postale | 874255.00 | -3.42% | 7454.00 |
| 39 | 36 | The Norinchukin Bank | 870334.00 | -10.91% | 33130.00 |
| 40 | 56 | The Export-Import Bank of China | 854569.00 | +10.59% | 23535.00 |
| 41 | 42 | Commonwealth Bank of Australia | 837071.00 | +1.77% | 25118.00 |
| 42 | 50 | Bank of Montreal | 836970.00 | +4.77% | 17671.00 |
| 43 | 38 | Credit Suisse AG | 829062.00 | -10.99% | 4805.00 |
| 44 | 44 | Standard Chartered Bank | 827818.00 | +4.91% | 1539.00 |
| 45 | 43 | Lloyds Bank Plc | 813243.00 | -0.11% | 2123.00 |
| 46 | 37 | HSBC Bank plc | 804828.00 | -12.93% | 1075.00 |
| 47 | 51 | Ping An Bank Co Ltd | 772165.00 | +12.79% | 3045.00 |
| 48 | 63 | CaixaBank SA | 769801.00 | +38.84% | 9125.00 |
| 49 | 39 | Banco Bilbao Vizcaya Argentaria SA | 750386.00 | -16.73% | 3698.00 |
| 50 | 46 | Banque Fédérative du Crédit Mutuel | 750367.00 | -2.58% | 1912.00 |