Banks are in danger of alienating their customers as they embrace new technology, according to a report from KPMG Consulting.
The report 'Customer Centric Management – Understanding the challenge in retail financial services' suggests technology brings no guarantee of customer satisfaction.
KPMG found many banks have introduced technology driven initiatives such as telephone and on-line banking.
But customers perceive these developments as further depersonalising their dealings with the organisation.
It says telephone services weaken traditional branch-based relationships, and that customers prefer the personal touch.
In order for banks to resolve these problems and become truly customer-focused KPMG believes they must look to companies in other sectors for examples of best practice.
KPMG Consulting head of European banking strategy Phil Middleton says: "The technological solutions that have been implemented recently may have distracted banks from less sophisticated measures that could have a greater impact on consumers."