Lloyds Banking Group PLC (LSE:LLOY), NatWest Group PLC (LSE:NWG) and Barclays PLC (LSE:BARC) all offer lower customer service than challenger banks such as Monzo, Starling and Chase, new research revealed on Thursday.
As part of the CMA’s compulsory dive into the service quality of the UK’s top lenders, a poll revealed Monzo ranked first for both personal and business current accounts.
Monzo ranked top for its online and mobile services as well as overall service quality for both businesses and individuals.
Starling Bank and Chase also ranked highly, however the latter was not ranked for business offerings, leaving lenders like Tide and Handelsbanken to take the higher spots.
For traditional lenders such as Lloyds, Barclays and NatWest, the rankings were less favourable.
Lloyds ranked 7 out of 17 for overall service quality for both its individual and business customers, although its overdraft offerings were ranked third in both categories.
HSBC Holdings PLC (LSE:HSBA) appeared to be the worst-ranked of the major listed lenders, coming in 13th for individual customer service and last according to those with business accounts.
Kurt Vogt Gwerder at Curinos, the data insight firm, explained that the strong performance by digital banks may have largely been due to its differing approach to customer relations compared to traditional lenders.
“These digital banks are less reliant on switching offers to entice new customers. Instead, they focus on creating and marketing a clear value proposition based on their target audience’s core needs to grow their customer base organically,” he said.
Source: Ipsos
Source: BVA-BDRC