The UK's four largest banks have all scored abysmally in a new poll, demonstrating the clear need for the new fast-track switching system that will allow consumers to switch banks more easily.
The four – Barclays, the RBS Group, Lloyds Group, and HSBC – control around 75% of the market for current accounts, but have achieved pitiful satisfaction ratings in a poll conducted for campaign group Move Your Money.
Barclays, which has been further gripped by scandal this week, finished rock-bottom of the satisfaction tables, registering a score of just 4%.
RBS, which includes NatWest and Ulster Bank, fared little better, finishing second-bottom with just 7%.
HSBC, which includes First Direct, achieved just 18%, while Lloyds, which has launched TSB as a standalone bank ahead of re-privatisation moves, scored 21%.
The Nationwide Building Society, on the other hand, whose current accounts (including the 5% FlexDirect account) continue to attract new customers, ranked at 64%.
HSBC's involvement in money-laundering scandals has done its reputation no favours.
Public Rancour Remains
Respondents were invited to assess the banks and building societies on five categories: honesty; customer service; culture; supporting the economy; and ethics.
The results showed that rancour still remains over the large scandal-struck institutions, with poor handling of PPI insurance, shady tax arrangements, and vast bonuses all condemned.
The grim result for Barclays is a blow for the bank’s chief executive, Antony Jenkins, whose hopes of instilling a new culture within the institution have failed to register with the public.
Barclays scored just 4% in MoveYourMoney's satisfaction poll - a blow to chief Antony Jenkins' attempts to turn the bank around.
The poll clearly identified smaller building societies as a strong and ethical option for those fortunate enough to live in those areas.
30 of the 38 institutions which earned a ‘green’ indicator on the Move Your Money scale (by scoring above 70%) are mutuals, but only seven of these offer current accounts.
The Cumberland Building Society, which ranked highest of all current account providers at 89%, has signed up to the new switching service, meaning that customers could transfer their accounts to the society within seven days (find out more).
However, close contenders Coventry BS and Leeds BS, which scored 85% and 79% respectively, are not currently signed up to the new service.
But the rise of Metro Bank could be the success story for the new switching system.
Based predominantly in Greater London and surrounding counties, the first new bank on the high street for over 100 years has fashioned itself around customer service since its launch three years ago.
The new poll suggests that the bank is capable of meeting its promises, as it earned full marks for customer service on the way to a respectable 77% overall.
Metro Bank's promises to deliver on customer service have been met so far. What next for the fast-growing bank?
Time to Act on Dissatisfaction
Laura Willoughby MBE implored customers to put the new system to work and act on their dissatisfaction by moving to a new bank.
"We know people are demanding more than broken banks that take us for a ride," she said.
"You don’t have to put up with disgraceful scandals, poor service and excessive bonuses any more. It’s payback time – you can switch!"
Find out more about the new seven-day current account switch service here.
Keith McDonald
Which4U Editor
If you enjoyed this article:
- Check out the latest articles on our Finance Blog.
- Sign up for our free e-newsletter.
- Follow us on Twitter for regular updates.
{loadmodule php,TwitterButton}