Nationwide is top brand for customer service as banks and building societies overtake retail for first time
– Customer satisfaction improvements level off, in line with a faltering economy
– John Lewis maintains position as top retailer
– Findings for banks and building societies show how sector has finally bounced back from global financial crisis of 2008
Nationwide is the UK’s best-performing brand for customer satisfaction, according to the latest UK Customer Satisfaction Index (UKCSI). The Index also reveals a fourth consecutive increase in customer satisfaction, reaching 78.3 (out of 100), a 1.0-point increase year-on-year. However, The Institute of Customer Service cautions that the rate of increase has significantly slowed, with the Index sitting just 0.1 higher than six months ago.
Nationwide scored 87.3 out of 100 and was followed by John Lewis (87.1) and first direct (86.0). Meanwhile, the most improved brands are OVO Energy (up 7.9 points year on year), Northumbrian Water (up 7.3 points) and Land Rover (up 7.1 points).
Banks & building societies have overtaken the retail sector for the first time
Retail has traditionally led all sectors for customer satisfaction since the UKCSI was launched in 2008, reflecting the industry’s longstanding focus on competitive positioning, personalisation and responsive customer service. Some retailers have found it harder to differentiate on service in the online space, with digital offerings becoming increasingly similar – and vulnerable to logistical or service failings by delivery partners.
The latest data shows that the banks & building societies sector has overtaken retail as the highest-performing sector for customer service, surpassing it for the first time since the UKCSI began.
The Institute of Customer Service attributes this improvement to the growing emphasis placed on customer satisfaction, loyalty and retention by the best-performing banks and building societies in recent years, which has been driven by investment in training and technology, healthy competition and the customer-outcome focused Consumer Duty standard.
The data reveals a significant rise in sector performance since the introduction of Consumer Duty in 2023, which made it mandatory for financial services firms to focus more on customer outcomes.
Jo Causon, CEO of the Institute of Customer Service commented,
“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.
It’s also likely that Consumer Duty has played a role in ensuring financial services businesses focus on the customer experience, specifically in the boardroom.”
