Banks will have to publish information on how likely people would be to recommend their bank – as well as its online and mobile banking, branch and overdraft services – to friends, relatives or other businesses.
The results will come from an independent survey of thousands of personal and small business customers, and must be prominently displayed in banks’ branches, as well as on their websites and apps will be published from today 15 August 2018.
An independent survey carried out by GfK UK found 85 % of customers at First Direct said they would recommend their lender in terms of overall service quality to friends and family – the highest score out of all banks.
Metro Bank 83% and Nationwide Building Society 73% – Barclays, HSBC, Lloyds and Royal Bank of Scotland, scored lower.
The UK Government says the information will make it easier for people to find out if another bank has a better offer and has been introduced to drive up competition between banks, which in turn should lead to a better overall quality of service.
What information is being published from today
Under our new rules customers will be able to easily find standard information on providers’ websites about:
- how and when services and helplines are available
- contact details for help, including for 24 hour helplines
- how often the firm has had to report major operational and security incidents
- the published level of complaints made against the firm
The new measure is one of a number being required by the Competition and Markets Authority (CMA) following its in-depth investigation of the sector.
The CMA also requested the Financial Conduct Authority (FCA) build on this by making banks release further information on their performance and services to drive up standards, and make it easier for people to judge whether they are with the best bank for them.
Adam Land, Senior Director at the CMA, said:
For the first time, people will now be able to easily compare banks on the quality of the service they provide, and so judge if they’re getting the most for their money or could do better elsewhere.
This is one of the many measures – including Open Banking and overdraft text alerts – that we put in place to make banks work harder for their customers and help people shop around to find the best deals for them.
Banks will now be required by the FCA to publish details of available services and relevant helplines.
In addition, the banks will also have to provide information about the number of major operational and security incidents they have experienced, and provide updates on their websites.
From February 2019, the FCA will expect that banks publish figures on how long it takes to open current accounts and replace debit cards.
Christopher Woolard, Executive Director of Strategy and Competition at the FCA, said:
Getting a good deal isn’t just about pricing. It’s also important for customers – including individuals and small businesses – to be able to judge the quality of service around their current account and to see whether other providers could offer something that suits them better. This information should encourage providers to offer the services that people value.