Banks Overtake Retail in UK Customer Satisfaction Index for First Time

The latest UK Customer Satisfaction Index (UKCSI) reveals a historic shift: banks and building societies have surpassed the retail sector for the first time in customer satisfaction. Nationwide Building Society tops the list with a score of 87.3, followed by John Lewis (87.1) and First Direct (86.0).

Banking Sector Leads the Way

Jo Causon, CEO of the Institute of Customer Service, said: “Customer satisfaction with banks and building societies has been improving steadily for some time now, in what has been a long-term turnaround for an industry whose reputation was severely damaged with the financial crisis. The sector has led the way in app development, with many providers now offering an excellent digital experience for routine transactional elements combined with well-trained, motivated and empowered employees for more complex requirements. Regaining trust has been paramount.”

An FCA spokesperson commented: “We’re pleased to see the Consumer Duty continues to have a positive impact, helping to build the confidence and trust people need to navigate their financial lives. Better satisfaction is better for business, and we’ll keep working with firms to help them to deliver positive outcomes for customers.”

—

Wide Pickt banner — collaborative shopping lists app for Telegram, phone mockup with grocery list

UKCSI Trends and Economic Outlook

The UKCSI, published twice a year in January and July, shows a levelling off after two years of increases. Causon noted: “The latest UKCSI reveals a levelling off of the customer satisfaction increases we’ve seen over the last two years, which sits at the highest level since July 2022. Our data shows consumers are less confident in their outlook for both the UK economy and their own personal finances than they were six months ago. This, when taken alongside the slowdown in our Service Nation’s recovery, should reinforce to businesses the importance of doubling down on their service offering at this moment; those that continue to invest, strike the right line in their approach to AI and sharpen the end-to-end customer experience will be best-placed to keep customers engaged and grow their business.”

Nationwide and Building Societies Respond

Stephen Noakes, group retail director at Nationwide Building Society, said: “As a mutual, we’re able to put members first, whether that’s through our commitment to keeping every branch open, continued investment in digital services, or sharing success directly with eligible members through our £100 Fairer Share payment for the fourth year running. Our colleagues work hard every day to support members however they choose to bank with us, and we’re pleased to see that reflected in these results.”

Andrew Gall, head of savings, consumer and insight at the Building Societies Association (BSA), added: “It’s great to see banks and building societies recognised for improving customer service. Customers want the convenience of great digital banking alongside the reassurance of being able to speak to someone face-to-face, and building societies’ continued investment in branches, telephone and digital services is helping to build the trust and confidence that people value.”