In a major industry-wide survey commissioned by the Competition and Markets Authority (CMA), the digital bank Monzo has emerged as the best bank in Great Britain for customer satisfaction. The poll gathered feedback from over 17,000 personal current account customers across the country, placing Monzo at the top, with Starling Bank and JP Morgan’s Chase coming in second and third, respectively.
The CMA’s annual survey, now in its seventh year, asked account holders to rate the quality of services provided by their banks, including online banking, overdraft arrangements, and branch experiences. At the bottom of the list, in 17th place, was the Royal Bank of Scotland, which the NatWest Group owns. Other underperformers included Virgin Money in the 16th and the Co-operative Bank in the 15th.
The survey found that digital banks without physical branch networks, such as Monzo, Starling, and Chase, outperformed traditional lenders regarding customers’ likelihood to recommend them to friends and family. A separate CMA survey of over 19,000 business current account customers also placed Monzo at the top, with HSBC coming last.
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Reasons Behind Monzo’s Performance
While the CMA refrained from speculating on the reasons behind the banks’ performance, it emphasized the importance of strong competition in driving improvements in customer service. “It’s important that banks listen to their customers and then provide services in a way that works for them,” said Dan Turnbull, the CMA’s senior director of markets.
Monzo, which has amassed over 10 million personal customers, expressed its gratitude for the top position but acknowledged that it would never take it for granted. Meanwhile, the Co-op Bank and Virgin Money, which is in the process of being acquired by Nationwide, noted that they were pleased to see improvements in their scores and were committed to further enhancing their service levels.
As the banking landscape continues to evolve, the CMA’s survey provides valuable insights into customer preferences and the importance of adapting to meet their needs. With digital banks leading the charge in customer satisfaction, traditional lenders may need to rethink their strategies to stay competitive and retain their customer base. The future of banking in the UK appears to be shaped by the rise of innovative, customer-centric financial institutions.
