The majority of UK challenger banks and building societies believe they provide better service for customers than the Big Four, although improvement is needed on mobile strategies.
New research, conducted by Vanson Bourne on behalf of Aspect Software, polled 100 senior decision-makers from challenger banks and building societies with an operation in the UK. Around two thirds of respondents think that they are better at achieving consistently high customer satisfaction levels and employee engagement than Barclays, HSBC, Lloyds and RBS, while 59% said they are better at providing fast customer service. Moreover, 43% feel they are out in front when it comes to developing innovative new services. However, 57% believed that they fared about the same or worse than the Big Four in their use of new technology and their mobile banking strategies (56%) and in their ability to price services competitively (47%).
Peter Littlewood, Finance Solutions Consultant at Aspect, comments: “While absolutely subjective, understanding how challenger banks and building societies view their capabilities in relation to the Big Four can give us some important insight into where they are placing their emphasis when building their businesses. Today, the Big Four have the home advantage. Unless challenger banks and building societies can up their game when it comes to the customer experience and technology to make a strong case for customers to switch, they will retain it. While a good number have made good progress in that regard, others have a significant amount of work to do.”