Britain’s digital lenders have steamed ahead of their high street rivals on customer satisfaction this year, with Monzo and Starling topping the rankings and Virgin and HSBC languishing in last place.
In its official ranking of banking account satisfaction today, the Competition and Markets Authority found that challenger fintech banks had ranked at the top in provision of both retail and current accounts.
Monzo and Starling Bank came out in first and second place respectively in both retail and business account provision. First Direct was rated as the third best personal current account provider while Handelsbanken was rated in third for business accounts.
The ranking cast a stark light on the performance of the UK’s incumbent lenders who have lagged well behind their uppity fintech peers on innovation.
Virgin Money, Royal Bank of Scotland and TSB, were judged to be the worst three current account providers, while HSBC UK, the Co-operative Bank and Virgin Money came in as the lacklustre trio at the bottom of the business ranks.
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Britain’s bottom-ranked business current account providers are:
- HSBC UK (15th)
- The Co-operative Bank (14th)
- Virgin Money (13th)
Britain’s bottom-ranked personal current providers are:
- Virgin Money (=15th)
- Royal Bank of Scotland (=15th)
- TSB (14th)
Adam Land, the CMA’s senior director of remedies, business and financial analysis, said the rankings were especially important during a cost of living crunch.
“How banks treat their customers can make an enormous difference to their daily lives, particularly when people and small businesses are feeling the pinch,” he added.
“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.”
The CMA’s banking ranking is rolled out annually as part of the Retail Banking Order designed to boost competition in the UK’s retail banking space. Personal and small business current account holders are asked how likely they would be to recommend their provider to a friend, relative or other business.
As part of the The survey also covered the quality of online and mobile provision, branch and overdraft services and, for small businesses, the quality of the relationship management they receive.