Poor service drives UK customers to change banks

A study by YouGov for Deloitte into customer loyalty to high-street banks in the United Kingdom has revealed that nearly half of all customers have changed accounts and nearly one-third have thought about switching.

The study revealed that it is poor service, not interest rates are the major reason for switch.

The study questioned more than 2,000 customers and found that 45 per cent of them had switched either their account or financial product from one bank to another. Another 29 per cent said they had thought about changing.
When asked why customers had changed bank, poor service was the main reason given by 48 per cent of customers.

Only 20% answered better interest rates and just 5 per cent said convenience or lack of a local branch.

It appears from the study that UK banks could benefit more from improving their customer service rather than cutting rates in an attempt to increase customer loyalty.