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Building societies extend their customer service lead over the banks

Every six months the BSA commissions YouGov to ask customers of banks and building societies about the level of service they receive from their provider. Building societies have outperformed other providers on every aspect of service since the survey began two years ago in July 2016. The results in July 2018 show building societies continue to lead the way.

G1.pngWhether someone is willing to recommend a service to a friend or family is usually considered one of the best indicators of customer satisfaction. 85% of building society customers said they would recommend their society to a friend or family, compared to less than three quarters (73%) of customers of other providers. Nearly eight out of ten (79%) said their building society offered competitive rates, compared to just 63% of customers of other providers.

Recent research from Savings Champion shows that over 73% of building society accounts pay a higher rate than the Bank Rate, compared to only 54% of bank accounts. It also finds that over the last 12 months, building societies paid their customers 0.92% on average, compared to just 0.69% paid by banks.

Nine out of ten (90%) building society customers said their provider offered good customer service, compared to just 84% of customers of other providers. Often customers feel they have to choose between competitive pricing or high levels of customer service but these results demonstrate that the building society sector are able to deliver both attractive interest rates and high levels of service to their customers.  

G2.pngBuilding societies have extended their lead in some areas of service over the last six months. The sector now has a 20 percentage point lead over other providers in regards reacting to customer feedback, versus 12 percentage points in January. They also have a 13 percentage point lead when it comes to being trusted to act in the best interest of customers, versus 11 percentage points in January.

Building societies have no external shareholders, and their customer are the owners. With no external shareholders to pay dividends to, building societies are able to pay better rates and reinvest profits in the best way that benefits their owners, who are their customers.

All figures, unless otherwise stated, are from YouGov Plc.  Total sample size was 2008 adults. Fieldwork was undertaken between 11th - 12th July 2018.  The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).

 

Posted by Joseph Thompson on 27 July 2018