British banks 'lagging behind other Europeans'

Bank customers in the UK are getting a raw deal in terms of service compared to some of their European counterparts, according to a global report out today.

A study of the banking sector in 17 countries found that British consumers suffer from long queues in branches and limited customer information.

Although on a par with the average performance of retail banks globally, financial service providers in the UK lag behind other European countries such as Switzerland and Spain.

The study, by consultancy firm Booz Allen, used mystery shopping techniques to look at the experience of customers using branches, call centres, online services and other banking facilities.

Overall, the UK market did not score highly in the index, the authors of the report found.

It noted long waiting times at branches and a lack of relevant information for the consumer.

Call centres suffer from difficulty in accessing a human being, no indication of waiting time and slow connection to an adviser.

UK banks are also failing to provide sufficient product information online and do not provide tailored offers, the study found

Fabienne Konik, principal at Booz Allen and author of the report, said: “There are some clear issues that explain the gap between UK retail banks and global best practices.

“UK banks are not performing well in terms of customer service and they are failing to make the most of virtually every sales channel that could expand their businesses.”

The report noted a move away from the branch structure in the UK.

Only 39% of UK consumers prefer purchasing current accounts in branches compared with a global average of 63%.

Booz Allen said the trend away from the branch is being led by mass affluent consumers, who tend to be time-poor and are 30% more likely to prefer using online services.

Overall, the study found Hong Kong to be the strongest country in terms of retail banking, followed by Switzerland and the United States.