20 October 2023 , 09:40
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Challenger banks have come out on top in customer satisfaction surveys for savings and current accounts, according to consumer group Which?. The surveys asked over 4,100 savers and more than 4,500 current account holders about their banking experiences.
Marcus by Goldman Sachs bagged a top customer score of 85% and five stars for its application process and communication. It also received a Which? Recommended Provider (WRP) endorsement for the third year running.
Paragon Bank also earned a WRP endorsement with a score of 82%, receiving top ratings for its application process and communication. Online and app-based provider Zopa was granted WRP status with a customer score of 78%.
Coventry Building Society also scored highly, receiving an overall customer score of 79% and WRP status. A brand needs a customer score of at least 70% to be eligible for WRP status, but this is only given if customers rate the provider highly for certain key services.
Which? also discovered that less than a fifth (17%) of savers are planning to switch accounts in the next year, potentially missing out on better returns in the higher interest rate environment.
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Starling Bank has come out on top in a recent survey of current account providers, scoring an impressive 83% and earning Which? Recommended Provider (WRP) status. First Direct also received the WRP endorsement, scoring a close second with 82%, particularly praised for its telephone banking service.
Nationwide Building Society was the highest-scoring provider that also offers branch services, achieving a score of 78%. However, for the second year in a row, Bank of Ireland UK found itself at the bottom of the list, with a score of just 63%.
A spokesperson for Bank of Ireland UK responded: "We value all feedback from customers and work continuously to improve customer experience. We are investing across our branch network, digital services and products to enhance our services for customers."
While many banks are currently offering cash incentives to switch accounts, Ele Clark, senior money editor at Which?, warned: "If you're thinking of moving banks, don't let enticing offers of free cash be your sole motivation." She added: "While we could all do with a cash injection right now, poor customer service might prove more frustrating than the introductory offer is worth."
The surveys were conducted by Deltapoll for Which? in July, and brands without sufficient responses were excluded from the research.
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