15th August 2018 – New information, out today, means customers can more clearly see how their bank compares on quality of service, following CMA and FCA action.
From today (15 August 2018), banks must publish information on how likely people would be to recommend their bank – as well as its online and mobile banking, branch and overdraft services – to friends, relatives or other businesses.
The results come from an independent survey of thousands of personal and small business customers, and must be prominently displayed in banks’ branches, as well as on their websites and apps. This will make it easier for people to find out if another bank has a better offer and has been introduced to drive up competition between banks, so leading to a better overall quality of service for those who use them.
The new measure is one of a number being required by the Competition and Markets Authority (CMA) following its in-depth investigation of the sector. The CMA also requested the Financial Conduct Authority (FCA) build on this by making banks release further information on their performance and services to drive up standards, and make it easier for people to judge whether they are with the best bank for them.
Adam Land, Senior Director at the CMA, said: “For the first time, people will now be able to easily compare banks on the quality of the service they provide, and so judge if they’re getting the most for their money or could do better elsewhere.
“This is one of the many measures – including Open Banking and overdraft text alerts – that we put in place to make banks work harder for their customers and help people shop around to find the best deals for them.”
Banks will now be required by the FCA to publish details of available services and relevant helplines. In addition, the banks will also have to provide information about the number of major operational and security incidents they have experienced, and provide updates on their websites.
From February 2019, the FCA will expect that banks publish figures on how long it takes to open current accounts and replace debit cards.
Christopher Woolard, Executive Director of Strategy and Competition at the FCA, said: “Getting a good deal isn’t just about pricing. It’s also important for customers – including individuals and small businesses – to be able to judge the quality of service around their current account and to see whether other providers could offer something that suits them better. This information should encourage providers to offer the services that people value.”
