Online challengers beat big banks in survey of customer satisfaction

Online challenger banks Starling and Monzo have topped a customer satisfaction survey from Which?

They were placed first and second respectively out of 24 brands, while online and telephone-based provider First Direct came third.

Starling Bank, Monzo and First Direct were all ranked highly for their customer service, application process, communication and transparency over charges.

The consumer group said Starling Bank and First Direct were also named Which? recommended providers.

It did not formally endorse Monzo as a recommended provider because it has yet to signup to a voluntary industry code which reimburses blameless victims of bank transfer scams.

Another bank that did receive recommended pro - vider status was M&S Bank, which also earned five stars for its online service.

Tesco Bank and Citibank received the joint lowest customer score, with both earning just two stars for complaints handling. Which? said RBS holds this year's record for the most two-star ratings, with customers criticising its telephone service, account benefits, complaints handling, branch service and overall customer service.

Which? money editor Jenny Ross said: "The leading challenger banks have cemented their position ahead of many of the UK'S biggest banking brands in terms of customer satisfaction, showing that innovation and modern ideas are shaking up the market. However, it's still good service that is truly valued by customers."