Four in 10 current account holders have been with the same bank
for more than 20 years, new Which? research reveals, despite
challenger banks outperforming traditional high street banks in
the consumer champion’s current account survey.
Which? surveyed more than 4,400 members of the public on their
opinions of their current account providers, and found that a
trio of challenger banks were the most highly rated by
customers.
Starling Bank, Monzo, and Triodos topped Which?’s customer score
table, with users ranking the brands highly for their customer
service and mobile apps.
Starling Bank also received a high enough score in Which?’s
product analysis to be named a Which? Recommended Provider (WRP).
It is joined by First Direct and Nationwide Building Society.
Four challenger banks achieved high customer scores, but missed
out on becoming WRPs by not meeting all of Which?’s criteria:
Triodos and Metro Bank got lower-than-average scores in Which?’s
own product analysis, while Monzo and Triodos have not signed up
to an important industry code for reimbursing scam victims.
Revolut also missed out on being a WRP as they are not covered by
the Financial Services Compensation Scheme.
Many traditional high street banks can be found languishing at
the bottom of Which?’s customer satisfaction table, often ranking
poorly for service in branches, and getting mediocre scores
across all other categories.
The Royal Bank of Scotland finished bottom of the table - meaning
it has been one of the three lowest-ranked banks for customer
score every year since 2014. HSBC and TSB make up the bottom
three.
When Which? asked people what they like about their current
accounts, most cited online banking facilities (47%), positive
past experiences (34%) and mobile banking facilities (32%).
However, not everyone manages their finances using online banking
via a smartphone - one in seven (13%) current account holders
never use it and five per cent use it less than once a month.
Of those who never or rarely use mobile banking, half (49%) said
it is because they prefer to use online banking via a computer or
tablet, around four in 10 (43%) do not feel the need to use it
and three in 10 (31%) think it poses too much of a security
risk.
Accessibility is also an issue, as one in five (18%) of those who
never use mobile banking or use it less often than monthly lack
the confidence to use mobile banking technology and 10 per cent
have phones that are not suitable for apps.
The proximity of the local branch is something a quarter (27%) of
people in Which?’s survey said that they particularly like about
their accounts, but banks continue to make drastic cuts: 736
branches shut their doors in 2021, and more than 220 are already
scheduled to close in 2022.
If you can manage without branch access, Which?’s research shows
you could get better service. Only four of the top 10 banks
(Cumberland BS, Metro Bank, Nationwide and The Co-operative Bank)
can be found on the high street.
Which? findings also suggest that opting for an ethical provider
does not mean compromising on customer service.
Nine in 10 (89%) customers of Triodos, nearly two-thirds (64%) of
customers of the Co-operative Bank and six in 10 (61%) of Smile
customers said that their provider’s environmental record for
ethical values was one of things they particularly like about
their account.
As the cost of living soars, it’s more important than ever to get
the most out of your current account. While many people are happy
to stick with their current account for years, switching means
you can benefit from a range of perks on offer – which are not
just limited to cash bonuses.
Some accounts pay interest on your balance, others are linked to
savings accounts with preferential rates, and some offer cashback
on your purchases.
Jenny Ross, Which? Money Editor, said:
“While many current account holders stick with their banks over
many years, we found leading challenger banks are ahead of the
traditional high street names in terms of customer
satisfaction.
“Our research shows a clear gap between the best and worst
providers and this should encourage customers unhappy with their
service to switch banks, as it’s never been easier.
“With the cost of living soaring, it’s vital to get the most out
of your current account. Switching can bring great incentives
such as cash bonuses, accounts paying interest on your balance
and even cashback on your purchases.”
Notes to editors:
Table
