CUSTOMER satisfaction is key when it comes to banking and for this reason, regular surveys are carried out to see how different providers are ranked.
The Competition and Markets Authority (CMA) has just published the results of the latest banking satisfaction survey.
2
2
It found that digital banks continue to do better than traditional lenders when it comes to how likely customers are to recommend them to friends and family.
Monzo was voted the best provider for individuals and businesses in Britain.
Some 80% of active customers said they were likely to recommend the personal current account to friends and family, and 85% said they would recommend the business current account to other firms.
The bank, which has more than 10 million personal customers, said topping the tables “time and time again” was not something it would “ever take for granted”.
READ MORE ABOUT BANK ACCOUNTS
Starling Bank was again a close second in both league tables, while it came in joint first place for its overdraft services for personal customers.
For the first time, Chase entered the survey for its personal current accounts and emerged as one of Britain’s highest-rated banks.
It came third for overall service quality, with 78% of customers saying they would recommend it to others.
With the backing of its US parent company JP Morgan, Chase launched in Britain in 2021 and has since built up more than two million customers.
Monzo, Starling and Chase are all digital banks, meaning none of them operate a branch network.
Kuba Fast, Chase’s UK chief executive, said its rapid growth shows consumers are “keen to do more of their banking with newer providers.”
The results, which take into account the period from July 2023 to June 2024, include a league table showing how personal and business current account holders rated the quality of their experience.
The ratings refer to the broad range of offers such as online and mobile banking, overdrafts and in-branch experience.
Small business customers also rated the quality of their relationship with their account manager and quality of those services.
Overall, the top-ranked personal current account providers in Great Britain are:
- Monzo (1st)
- Starling Bank (2nd)
- Chase (3rd)
The lowest-ranked personal current accounts providers in Great Britain are:
- The Co-operative Bank (15th)
- Virgin Money (16th)
- Royal Bank of Scotland (17th)
Overall, the top-ranked business current account providers in Great Britain are:
- Monzo (1st)
- Starling Bank (2nd)
- Tide and Handelsbanken (joint 3rd)
The lowest-ranked business current account providers in Great Britain are:
- Royal Bank of Scotland (13th)
- The Co-operative Bank and Barclays (joint 14th)
- HSBC (16th)
The top-ranked personal account providers in Northern Ireland overall are Monzo, Starling Bank and Nationwide.
Meanwhile, the lowest-ranked current account providers are Ulster Bank, Bank of Ireland UK and Allied Irish Banks.
The top-ranked business current account provider in Northern Ireland is Santander, while the lowest-ranked business current account provider is Bank of Ireland UK.
Dan Turnbull, senior director of markets at the CMA, said: “It’s important that banks listen to their customers and then provide services in a way that works for them.
“Strong competition is the most effective way to improve the customer service experience, and this survey provides the transparency that people need to be able to choose a new provider if they feel their bank is not up to scratch.”
In response to the latest rankings, Sam Richardson, deputy editor of Which? Money, said: “As is becoming tradition, challenger banks lead the way when it comes to quality customer service – results also reflected in Which?’s surveys of current account customers.
“These results should serve as a wake-up call to high street banks to up their game – and the CMA must not hesitate to take action against firms that fall short of their regulatory requirements.
“For customers unhappy with the quality of service they’re receiving, it’s never been easier to switch.
“Most banks have agreed to use a switching service, which means it should take just seven working days to switch you over from your old account once the new account is opened.”
How do I switch bank accounts?
SWITCHING bank accounts is a simple process and can usually be done through the Current Account Switch Service (CASS).
Dozens of high street banks and building societies are signed up – there’s a full list on CASS’ website.
Under the switching service, swapping banks should take seven working days.
You don’t have to remember to move direct debits across when moving, as this is done for you.
All you have to do is apply for the new account you want, and the new bank will tell your existing one you’re moving.
There are a few things you can do before switching though, including choosing your switch date and transferring any old bank statements to your new account.
You should get in touch with your existing bank for any old statements.
When switching current accounts, consider what other perks might come with joining a specific bank or building society.
Some banks offer 0% overdrafts up to a certain limit, and others might offer better rates on savings accounts.
And some banks offer free travel or mobile phone insurance with their current accounts – but these accounts might come with a monthly fee.
Days ago, we revealed the best savings accounts you need to apply for now.
It comes after experts warned that saving accounts paying over 5% could vanish soon.
Since the base rate was cut to 5% earlier this month, a number of lenders have cut the rates of their deals.
While mortgage holders are celebrating lower rates as it reduced borrowing costs, savers are left with the short end of the stick.
As borrowing costs drop, banks have also started to lower interest rates on some savings accounts.
For example, Access Bank had a two-year fixed-rate account paying 5.06% but this has now been cut to 4.9%.
However, it is important to remember that if you fixed before the base rate cut you rate will stay the same.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
