DataEQ has released the findings of its 2024 UK Banking Sentiment Index, which tracked customer sentiment on major UK banks through 400 000 social media interactions from 1 June to 30 August 2024. The report reveals that digital banks like Monzo, Wise, and Revolut outperformed traditional high street banks in customer satisfaction, though the sector as a whole struggled with a negative Net Sentiment score of -13%.
Digital Banks Set the Standard
Consumers praised Monzo for its user-friendly app setup, convenient savings pot options, and support for cryptocurrency transactions. Wise also earned positive feedback for its straightforward interface, efficient money transfers, and competitive pricing. Both banks’ digital-first approach resonated with users, reflecting a broader trend toward digital banking solutions in the UK.
"Digital banks are redefining customer expectations, focusing on ease of use and quick transactions. This responsiveness to customer needs is a core strength," commented Jamie Botha, Head of Client Partnerships at DataEQ.
Traditional Banks Struggle with Service and Reputational Issues
Among high-street banks, Metro was the top performer despite a negative Net Sentiment score of -10%, while Barclays recorded the lowest score at -36%, largely driven by reputational concerns. Other traditional banks like Nationwide and HSBC also faced challenges due to app downtime and customer service difficulties during the reporting period, underscoring the digital transition challenges many established institutions face.
Consumer Duty and Vulnerable Customers
The report highlighted areas for improvement in Consumer Duty, particularly in supporting vulnerable customers. The study found that 40% of UK banking conversations related to Consumer Duty, with dissatisfaction centered on service accessibility and consumer support challenges.
Key Drivers of Customer Sentiment: Product Features and Digital Security
Products and digital security were major themes, While customers appreciated some digital banks’ cryptocurrency options, traditional banks, in particular, faced criticism over blocked cards, high transaction fees, and difficulties accessing product information. Digital security concerns, including app downtime and perceived inadequate fraud protections, contributed to negative sentiment.
Looking Ahead: Enhancing Digital Service Channels
The UK banking sector’s overall sentiment suggests that more effective support across digital channels could improve customer experience. "Banks that focus on enhancing their digital service channels and response times will likely see improved customer sentiment," Botha added. "Prioritising customer needs through a balanced approach between automation and human support remains crucial for the sector."
For further insights into the UK Banking Sentiment Index and to view individual bank performances, click here.