A Monzo bank card (Monzo/PA)
(Picture: PA Media)Bank start-ups Starling and Monzo beat the high street giants in a Government-commissioned public survey of bank services, in the latest sign of London’s emerging fintech ecosystem shaking up the established industry.
The two challenger banks came joint first for personal current providers in Great Britain, in a customer satisfaction survey commissioned by the Competition and Markets Authority. Starling ranked first for business current account providers, while Monzo ranked second.
Anne Boden, founder and CEO of Starling Bank, said: “At Starling, we’re committed to helping our customers better manage their money and to providing them with customer support 24/7, now more than ever. We’ve shown that you don’t have to rip off customers to do this. You can be fair.” A Monzo spokesperson said: “Listening to customers and solving for their needs is in our DNA and we’re excited to keep building the Monzo of the future with them.”
Meanwhile, 298-year-old Royal Bank of Scotland came bottom of the list for personal current account providers at 16th, followed by Virgin Money at 15th. The Co-operative Bank ranked worst for business current account providers, followed by HSBC and Virgin Money which came joint 13th.
The survey asked banking customers about the quality of online, mobile, branch and overdraft services, as well as establishing how likely they would be to recommend their provider to a friend.
Adam Land, senior director at the CMA, said: “These results show how banks are treating their customers at a time when many are feeling the pinch.
“When times are tough you find out who’s fighting your corner and if your bank doesn’t match up to the competition — you can vote with your feet and make a switch.”
The results highlight the continued dominance of the capital’s fintech ecosystem as challenger banks outflank their traditional peers to offer quicker and easier services.
London is the world’s top destination for fintech investment, with $6.3 billion (£5.3 billion) raised in the first six months of 2022 alone, according to figures from the Global Startup Ecosystem Report.
Raf De Kimpe, CEO of Fintech Week London, said: “I think it’s a very logical thing to happen if you look at the way challenger banks are built — they’re built differently. In a world that is rapidly changing it is easier for them to adapt and innovate and respond to the evolving needs of consumers.
An RBS spokesperson said in a statement: “We can do more to improve the experience for customers in certain aspects of our service. We’re investing in dedicated teams focussed on making targeted improvements for customers in order to address the areas where our service falls short of expectations.”
In a statement Co-op Bank said: “The Co-operative Bank has made significant investment in recent years into its business banking services, delivering substantial infrastructure capabilities, combined with improvements to digital banking channels and the broader customer service experience.
“We strive to continually enhance our SME customer experience to meet the needs of our customers, and we are fully committed to supporting our customers to help them manage and grow their business, therefore we expect our CMA scores to improve in the future.”
