Tuesday 29 October 2019 12:45 am

Consumers choose challenger banks due to poor service on high street

Poor customer service at high street banks is causing consumers to turn to challengers such as Monzo in droves, a new report has found.

Read more: Monzo smashes past £2bn valuation in fresh funding round

Customers are particularly peeved about the difficulty of mortgage applications and the resolution of problems, according to the report from French consultancy Capgemini.

These problems have caused them to turn to financial services from challenger banks such as Monzo, which recently passed 2m customers, and big technology companies such as Apple.

Of customers likely to switch their primary bank in the next 12 months, more than 80 per cent are currently using payments, cards, or banking account products from big technology firms and challenger banks or are likely to do so in three years, the report found.

The top three reasons customers say they turn to financial products from non-traditional players are lower costs, ease of use, and faster service, according to Capgemini’s research.

“In an era of rising consumer expectations, banks are challenged to offer their customers a consistent engaging experience across all channels – branch, web and mobile,” said Anirban Bose. 

Read more: Bottom third of banks facing ‘do or die’ moment, report warns

“Banks that identify their top capabilities and then seek partnerships with fintechs and other business sectors to enhance their offerings in other areas will be the most successful.”

(Image credit: Getty)