Smaller UK banks offer better customers satisfaction, annual survey shows

News - Banking

Written by Ray Clancy

Monday, 23 August 2010 10:33

The big high street banks in the UK continue to fall short of customers’ expectations as smaller banks make for happier banking, according to a new survey.

Smaller banks, such as First Direct and Smile, top the 2010 Which? Money People’s Choice poll which reveals the best and worst financial brands in terms of current accounts, savings, credit cards and mortgages.

First Direct, One Account and Smile scored best, leaving Bank of Scotland, Halifax and Santander at the bottom of the table.

excellent customer service remains key to keeping customers happy, as First Direct came top in three satisfaction surveys, current accounts, savings and mortgages, giving it an overall score of 82%.

Current account mortgage experts, One Account, came in second with a score of 81%, while Smile came third with 79%.

Consumers looking for happy banking should steer clear of banks owned by the Lloyds Banking Group, as Bank of Scotland and Halifax both sit at the bottom of the table, and Lloyds TSB and Cheltenham & Gloucester don’t score much better.

‘Whether it’s a current account, mortgage, credit card or savings account, we consistently see the same names keeping their customers happy. Time and again, the big high street banks are found to be lacking when it comes to good customer service. People who are unhappy with their bank must vote with their feet and move to a better financial provider,’ said Which? chief executive, Peter Vicary-Smith.

Outside the top three the Co-operative bank scored 76%, Coventry Building Society was next with 71% and Cahoot with 68%. The Nationwide Building Society had 67%, Tesco Bank 66% and Saga 65%.

Those with 60% or under include HSBC, Marks & Spencer (50%), Skipton Building Society (59%), Clydesdale Bank (58%) and Sainsbury’s Finance and Standard Life at 57%.

Troubled bank Northern Rock scored 49%, Santander/Abbey National was as 47%, Halifax at 46% and Bank of Scotland at 43%. The overall average was 59%.