Customer service in the banking and building society sector has fallen again, according to the latest UK Customer Satisfaction Index (UKCSI).

Banks and building societies finished seventh out of 13 industries in the overall index, with a score of 77.7 – a dip of 0.4 points between January and July this year.

Half of the 14 banking organisations included in the UKCSI – which is published by the Institute of Customer Service (ICS) – scored below the all-sector average. Only four organisations improved their score by more than one point and three reported a fall in their score by more than one point.

But the sector performed well for professionalism of staff and problem solving, said ICS, demonstrating the positive role of High Street branches and accessible frontline staff that consistently deliver good service. Expectations were exceeded for 17 per cent of banking customers, while expectations were not met for 12 per cent.

Meanwhile, customers of banks and building societies were least likely to use social media to highlight complaints, the index found. Although the proportion of people using this channel of communication trebled from 0.4 to 1.9 per cent since 2013, it was still the lowest of all sectors.

Customer service leaders in the sector were revealed as first direct (86.3), then Nationwide and the Co-operative Bank (83.5). Tesco Bank also increased its score by 6.3 points to reach 82.7, making it the second most improved organisation overall in the UK.

Jo Causon, CEO of the Institute of Customer Service, said: “The banking and building society sector is amongst the most diverse in terms of performance. There are examples of long-term excellence, as in the cases of Nationwide and first direct. Yet there are many organisations that are underperforming, putting the sector in the bottom half of the index.

“The increased loyalty and trust that good customer service brings is essential to a banking sector where account switching is becoming easier and more frequent,” she continued. “Nevertheless, many banking organisations perform below the all-sector average, offering further scope for improved business performance through customer service.

“With consumers more likely than ever to recommend on the basis of a good experience and share poor customer experiences with friends and colleagues, it is a critical time for the sector to make improvements in this area.”

The UKCSI is based on interviews with 9,000 customers about 197 of the UK’s leading brands, spread across 13 different sectors.

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