Tuesday 17 August 2021 10:03 am

Digital banks pull ahead of high street rivals in battle for consumers’ wallets

Digital banks are pulling ahead of their traditional high street rivals in the battle to deliver strong customer services, according to findings from the competition watchdog.

The Competition and Markets Authority found that Monzo, Starling Bank and First Direct are the top banks for customer service in Britain.

The CMA conducted a survey of 1,000 customers asking whether they were likely to recommend a current account service to a friend or family.

Tesco Bank and Royal Bank of Scotland, which operates under the NatWest brand in England and Wales, came bottom.

Lloyds ranked the highest among the traditional high street banks.

The results of the survey can harm high street banks’ reputation as they have to display their ranking in physical branches.

The survey is intended to drive up competition between banks by forcing them to improve customer services in order to attract customers.

Adam Land, senior director at the CMA, said: “Lots of people don’t have time for life admin, which is why jobs like comparing providers can fall to the bottom of the list.

“These results make it easy for people to see which banks are best meeting their customers’ needs at the click of a button, which puts pressure on poorly performing banks to raise their game.”

The results come as Monzo disclosed in its latest financial results that it is currently the subject of an anti-money laundering probe by the Financial Conduct Authority.