The UK banking market is likely one of the best and dynamic in Europe. Incumbents must always innovate to remain forward on buyer expertise (CX) and combat off extra conventional challengers, agile fintechs, and, now, additionally main US gamers. To assist UK banking manufacturers perceive what actually drives buyer loyalty — not solely retention but additionally enrichment and advocacy — Forrester has been measuring the standard of buyer expertise by way of its Buyer Expertise Index (CX Index™).
In 2022, we benchmarked CX high quality at 10 main UK banking manufacturers. This 12 months, the typical CX high quality within the UK banking business improved considerably in comparison with 2021. We additionally noticed that:
- Direct banks and mutuals proceed to outpace conventional banks. First Direct, Starling Financial institution, and Monzo, all direct banks, and Nationwide Constructing Society, a mutual, are the 4 highest-scoring banking manufacturers within the UK and within the European CX Index general. Lloyds Financial institution is the one conventional financial institution that obtained a rating within the Good class and above the UK business common, therefore retaining the tempo with challengers and mutuals. The opposite incumbents are struggling to satisfy rising buyer expectations and comply with the quick tempo of innovation set by the leaders.
- First Direct leads not solely within the UK but additionally in Europe. First Direct’s CX Index rating elevated by 2.8 factors between 2021 and 2022, dethroning Monzo and turning into the highest UK and European banking model. Whereas First Direct suffered from a deterioration in customer support linked to elevated name volumes and wait instances over the course of 2020 and 2021, it nonetheless outperforms all different banks in Europe on all 5 drivers of customer support and on the 2 drivers of communication.
- Monzo falls from grace. Monzo’s CX Index rating plummeted by a big 5.2 factors between 2021 and 2022, falling from first to fourth place within the UK rating. Fewer clients now agree that the model is efficient at assembly their wants and that it’s straightforward to work with. For the reason that pandemic, Monzo has been making an attempt to shore up its income, departing from its freemium mannequin with the launch of Monzo Plus and Monzo Premium and with the introduction of latest charges for ATM withdrawals and card replacements. Premium providers — which represented 250,000 clients out of a complete of 5.8 million on the finish of February 2022 — now take up a number of improvements.
- Speaking with clients utilizing plain language is the highest driver of buyer loyalty. Main banks take away jargon, simplify phrases and situations, and supply ongoing communication coaching to their customer support representatives. For example, Starling adopts a “easy and approachable” tone of voice. Customer support representatives should full six weeks of coaching, together with a tone-of-voice coaching, earlier than they begin speaking to clients on their very own.
For extra detailed evaluation of the UK CX Index outcomes — together with each model’s rating and the CX drivers and feelings that drive loyalty essentially the most — take a look at our stories, The UK Banking Buyer Expertise Index Rankings, 2022 and The European Banking Buyer Expertise Index Rankings, 2022, or contact us.
