Royal Bank of Scotland has come bottom of a new personal banking league table, with fewer than half of its customers saying they would recommend it to friends and family.
Under new rules from the Competition and Markets Authority, as of yesterday banks will be ranked for service twice a year and must publish details of how they compare with rivals to allow customers to make better decisions about who to bank with.
Rankings “must be prominently displayed in banks’ branches, as well as on their websites and apps”, the CMA said.
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Based on a range of measures such as customer service, online and mobile banking, overdrafts and in branch services, RBS came joint bottom overall, tied with Clydesdale.
The bank also came last for business banking.
At the other end of the spectrum, First Direct, which is owned by HSBC, came top with 85% of its customers satisfied.
Adam Land, senior director at the Competition and Markets Authority, said: “For the first time, people will now be able to 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”.
The regulator hopes its decision to force banks to publish customer ratings figures will increase competition in the sector.
A major banking review by the CMA found consumers could save up to £92 a year by moving accounts, although just 3% of current account holders had changed banks in the past year.
The Financial Conduct Authority has also set out new requirements for information banks must provide to customers, including details of available services and relevant helplines and from February, banks will also be expected to publish figures on how long it takes to open current accounts and replace debit cards.
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