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UK banks start to win back public trust

Lucinda Beeman
Written By:
Lucinda Beeman
Posted:
Updated:
05/12/2014

UK banks are putting their scandal-ridden pasts behind them and finally winning back the public’s trust, according to new research from uSwitch.

The survey, which canvassed 10,000 current account customers, found that almost three quarters (72%) now trust their current account provider and customer satisfaction with banks stood at 82%.

First Direct came top in eight out of nine categories including Most Trusted, Most Recommended, Best Overall Satisfaction and Best Customer Service. RBS was voted worst current account provider, and came last in eight out of nine categories. Lloyds and HSBC also performed badly. Santander showed some improvement, moving from bottom place last year. It did well on rewards with people liking its cashback programme and higher interest rates, but still scored poorly on service.

The research also showed that people are increasingly inclined to switch their current accounts, busting the popular myth of consumer inertia. The research showed only six in ten customers (59%) have been with their bank for more than ten years, down from 72% last year.

The Co-op Bank held onto third position in almost every category, despite the poor publicity that the Group has attracted over the past year. It still managed to secure a top-three spot in the Most Trusted, Most Recommended, Best Overall Satisfaction, Best Customer Service and Best Value for Money categories, suggesting its corporate problems may not have been felt on the ground.

David Mann, Head of Money at uSwitch.com, said: “It’s clear that the best bank accounts are the ones that offer tangible benefits such as incentives and rewards – but other factors such as customer service, value for money and trust are as important as ever. Many providers still have a long way to go before they are comfortably sitting in their customers’ good books.

“Competition in the current account market is hotter than ever and banks can’t afford to take their foot off the pedal. Already this year we have seen high profile brands such as M&S and Tesco launch current accounts specifically designed to steal customers off the high street. With the likes of Virgin Money and Atom Bank also expected to launch in the next 12 months, it’s clear that the Big Four are no longer holding all the cards.”