Which? has released a new report in which the UK’s largest high street banks are among the worst for client satisfaction. Current accounts, mortgages, credit cards, savings accounts were the elements rated among 28 banks and building societies. None of the high street banks were present in the top 15.
Santander was rated bottom, with an overall customer score of just 41% while taxpayer-backed banks Lloyds TSB, Halifax, Bank of Scotland, RBS, Natwest and Northern Rock were all rated poorly. First Direct, the online bank, came top for customer score with an overall rating of 84%.
Which? says that banks’ ability to keep their customers happy isn’t reflected by their share of the market. The four banks with the highest customer scores for current accounts control just 6% of the current account market, while the four with the lowest scores control 38%.
Which? agrees with the Independent Commission on Banking’s (ICB) aim of improving competition in the industry, but believes more needs to be done. The lack of transparency and complexity of different charging structures make it difficult for consumers to understand how much they are paying for their account and whether another bank offers a better deal.
Which? chief executive, Peter Vicary-Smith, says:
“The Independent Commission on Banking has acknowledged that the market isn’t competitive and consumers are infuriated by poor service. The Government must be clear how it will create more competition when it sells our stakes in Lloyds, RBS and Northern Rock. The industry must be referred to the Competition Commission if the market doesn’t improve.
“The high street is dominated by banks that have a shocking record for customer satisfaction – what more proof do we need that the market isn’t working? We will only have a truly competitive market when banks are made to face up to a simple choice – either look after your customers or be prepared to lose them.”
Source : Which?
