Which option? That being said, Starling Bank stands out as one of the prime current account providers for mobile banking. Photo: Adrian Dennis/AFP (Adrian Dennis via Getty Images)Thank you for reading this post, don't forget to subscribe!
A novel survey has disclosed that the challenger banks in the UK have surpassed their traditional high-street counterparts in terms of savings and current accounts.
Which option? conducted a survey of 4,178 savers and 4,550 current account holders, examining various aspects of their banking experiences.
These aspects comprised of application procedures, customer service, and which provider offered the highest savings rates. How were these factors amalgamated to derive a conclusion? Recommended Provider (WRP) Score.
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“Our study demonstrates that the leading challenger banks have outperformed the traditional high street names in relation to both customer satisfaction and competitive savings rates,” stated senior Money editor Elle Clarke.
The survey revealed that the top-ranking banks for savings accounts were Coventry Building Society and Paragon Bank. Both banks attained five-star ratings for this criterion, while Marcus and Zopa received four-star ratings.
Overarching Customer Experience Score
The survey discovered that Marcus, owned by Goldman Sachs (GS), attained the highest overall rating – Recommended Provider (WRP) Ranking. Marcus achieved an impressive customer experience score of 85%, in addition to receiving five stars for its application procedures and communication.
Goldman Sachs’ banking app Marcus emerges as the leader in customer experience Ranking. Marcus accomplished an 85% score. Photo Rafael Henrique/SOPA/LightRocket/Getty (SOPA Images via Getty Images)
In second place was Chase, attaining an overall score of 83%. Paragon Bank secured the third position with 82%, consequently receiving the WRP status for the first time since 2019. Similar to Marcus, it received top evaluations for both its application process and communication.
Coventry Building Society garnered a score of 79%, thus ranking fourth overall and accomplishing four or five stars for each rated element.
Zopa, an online and app-based provider, also received the WRP status, achieving a customer score of 78%. Zopa earned five stars for its application process and four stars for communication and transparency. Zopa tied with Monzo Bank for fifth place in terms of overall performance.
The count of savers switching accounts diminishes
The survey indicates that currently only one out of six savers is considering making changes to their accounts within the next year. Which option? Consequently, numerous customers might forgo higher returns offered by alternative providers with better interest rates. As an example, for quick-access accounts, there was a 2% disparity between the leading (5.15%) and average (3.16%) rates. If an individual saves a sum of £10,000 for a year, this translates to a loss of £199.
Senior money editor Elle Clarke remarked, “Many of us remain loyal to the same bank for years, but with evident discrepancies between the finest and substandard providers, customers who are dissatisfied with their service or rates are more inclined to contemplate switching. They ought to do so.”
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Which option? The foremost and poorest current account providers were also assessed, with Starling Bank prevailing and securing the WRP status. On the whole, Starling Bank achieved a score of 83% and was recognized as one of the finest current account providers for mobile banking.
Nationwide (NBS.L) scored the highest among Current Account Providers with Branch Networks, attaining 78% in the ranking. It presently operates 605 branches in the UK, which is more than any other banking institution. Its in-branch service received four stars, the highest rating given to any bank.
For the second consecutive year, Bank of Ireland UK obtained the lowest ranking among current account providers with a score of 63%. Customers awarded it three stars across all aspects of its service.
For savings providers, Elica Bank had the lowest score, attaining 52%. The bank primarily caters to small and medium-sized businesses (SMEs), but also offers personal savings accounts for individuals who can save at least £10,000.
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