Challenger banks trump legacy lenders for customer satisfaction
Digital banks Monzo and Starling have again beaten legacy banks in the latest customer satisfaction league table from UK regulators.
The Competition and Markets Authority (CMA) today published the 11th instalment of the rankings, based on a large-scale survey to determine the quality of personal and business current account providers in the UK.
At the top of the list for both personal and business accounts was Monzo, followed by Starling, suggesting the British public is continuing to lean towards challenger banks and away from traditional financial institutions.
Monzo and Starling were also ranked in the top two spots last year.
At the bottom of the league table for personal accounts was the Royal Bank of Scotland, tied with Virgin Money and TSB just ahead. For business accounts, HSBC UK took the bottom spot, just below the Co-operative Bank and Virgin Money.
“How banks treat their customers can make an enormous difference to their daily lives, particularly when people and small businesses are feeling the pinch,” said Adam Land, a senior director at the CMA.
“These results make it easy for people to see in branch, or at the click of a button, which banks are listening to their customers and meeting their needs.
“This puts pressure on poorly performing banks to raise their game. If the service and quality offered by your bank has been below par, then you may well be able to do better by making a switch.”
Lyndsey Edgar, VP of operations at Monzo, told UKTN: “Our mission is to make money work for everyone so we’re delighted to be recognised for the outstanding service we provide for our current account and business customers.”
While challenger banks have performed well in customer satisfaction rankings, last year, data from the Financial Ombudsman Service found that fraud complaints at Monzo, Starling and Revolut had increased significantly.