Banks will be ranked for service and must publish details of how they compare with rivals to allow customers to make better decisions about who to bank with, under new rules from the competition watchdog.
The Competition and Markets Authority (CMA) said banks must 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 from 15 August onwards.
The rankings are based on an independent survey of thousands of personal and small business customers, carried out by GfK and BDRC.
Rankings “must be prominently displayed in banks’ branches, as well as on their websites and apps”, the CMA said.
First Direct came out on top in Great Britain for overall service for personal banking customers, followed by Metro Bank, then Nationwide.
For small business owners, Handelsbanken was top, with Metro Bank again in second place, followed by Santander.
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.”
These are the best banks for overall service for personal and business accounts:
Meanwhile, the Financial Conduct Authority (FCA) has set out new requirements for information banks must provide to customers, including details of available services and relevant helplines, as well as information about the number of major operational and security incidents they have experienced.
From February 2019, banks will also be expected to publish figures on how long it takes to open current accounts and replace debit cards.
Christopher Woolard, executive director 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.”
