Customer service in the retail banking sector has failed to improve in the past year, according to the latest UK Customer Satisfaction Index (UKCSI), released by The Institute of Customer Service. The report found that banking is the only sector of the economy that has not improved its rating for customer satisfaction since July 2015, despite moves to increase competition and quality of service.

The index revealed that banks and building societies have slipped down the industry rankings in the last year, dropping from fourth to seventh. Just four banks are listed in the top 50 organisations, with only two banks improving by more than two points from last year. first direct is the only bank that has consistently appeared in the rankings since January 2011.

Nationwide is the highest scoring FI in sixth place, followed by first direct in seventh. TSB ranked number 25, while the Cooperative Bank came 47th. The company was identified as one of the most improved organisations covered by the UKCSI, rising from 93rd place in July 2015.

Overall, 10 per cent of customers said they have experienced a problem with their bank or building society in the past six months. The main reason, cited in 29 per cent of complaints, was staff competence, followed by the quality and reliability of service (reported in 25 per cent of cases), and staff attitude (21 per cent).

According to the study, banks whose average customer satisfaction was higher than the sector average were more successful in gaining accounts, with 20,000 new accounts on average. Banks with lower than average customer satisfaction suffered an average loss of 9,663 customer accounts over the same period.

The UKCSI is the national measure of UK customer satisfaction. It rates customer satisfaction at a national, sector and organisational level across 13 sectors – individually rating many leading organisations. The index has run every six months since January 2008 and involves interviews with 10,000 UK consumers.

Jo Causon, CEO of The Institute of Customer Service, noted: “It’s evident that the retail banking sector is resting on its laurels, safe in the knowledge that customers are unlikely to switch their accounts. Aside from public services, banking has the highest percentage of customers who have used the same service for more than 20 years, supporting the CMA’s assertion that the sector suffers from weak competitive pressures. I believe the lack of improvement in the customer service offered by banks and building societies is a direct symptom of this complacency.”

Amazon.co.uk topped the overall poll this time around, with the UK’s best customer satisfaction score.

Share Story: