United Kingdom (UK) Retail Banking Competitor Benchmarking – Analyzing Top Players Market Performance and Share, Retention Risk, Financial Performance, Customer Relationships, Customer Satisfaction and Actionable Steps

UK Retail Banking Market Report Overview

All UK retail banking covered in this report increased their total divisional assets (TDA) from 2020 to 2021. This indicates that they have managed to cope with the impact of the COVID-19 pandemic. Lloyds Bank and Barclays increased their share of the UK retail banking market in multiple segments from 2011 to 2021, entrenching their positions.

The UK retail banking competitor benchmarking report analyzes financial performance, depth of customer relationships, and customer satisfaction. It ranks UK’s top banks across a range of criteria, from digital experience to product clarity and money management tools.

UK Retail Banking Market – Customer Relationships According to NPS Results

The top banks with the highest NPS are First Direct, Monzo, Bank of Scotland, Nationwide, Virgin Money, Barclays, Halifax, Lloyds, Co-operative Bank, Santander, HSBC, NatWest & RBS, and TSB. First Direct scores the highest for NPS, in addition to having good satisfaction and acquisition rates. Digital challenger Monzo is the second-best NPS performer with 40%, which complements its leading rate of new customer acquisitions. Barclays and Bank of Scotland lead UK banks in cross-selling figures.

UK Retail Banking Market Analysis by Customer Relationships According to NPS Results

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UK Retail Banking Market - Customer Satisfaction Concerning Digital Experience

The main drivers of promoting and detracting for UK customers come from a financial gain perspective, with competitive pricing and rewards being the top two ranked factors. Banks should focus primarily on bringing their customers financial gain to grow their NPSs. First Direct has the highest net satisfaction and performs above average in every attribute. Co-operative Bank has the potential to increase its digital usage in the future with small satisfaction improvements for certain attributes.

UK Retail Banking Market Analysis by Customer Satisfaction as Per Digital Experience

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UK Retail Banking Market – Actionable Steps by Banks

Bank of Scotland: Bank of Scotland has been successful in acquiring new customers, with the more than 40% of all account holders having signed up in the last five years. Its biggest issue is with being able to resolve customer problems digitally without needing a branch or call center. Regarding overall satisfaction metrics, the Bank of Scotland’s deficit is reduced despite still having the lowest average score. It relies on its loyalty rewards to bring its score up against the average but needs to focus on making its products and digital banking experience easier to understand.

Barclays: Barclays owns the highest current account market share of all UK banks. Barclays ranks third from the bottom for net overall digital customer satisfaction. In comparison to its biggest competitors, Lloyds and NatWest, Barclays underperforms in platform navigation and digitally resolving problems. Compared to other UK banks, Barclays also underperforms in providing helpful staff, suggesting it should focus on staff training to better its satisfaction levels.

Co-operative Bank: Co-operative Bank was the only UK bank to experience a loss of market share in all four areas of retail deposits, credit cards, personal loans, and residential mortgages, highlighting why it only holds a 2% total of all current accounts. It has an above-average score for digital net satisfaction but relies heavily on high scores in simple account access and appealing branding. To reach the top of the digital satisfaction table, it needs to focus on its digital problem resolution, as this is where it falls significantly short.

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UK Retail Banking Market Report Overview

Key Highlights

• The top four UK banks continue to account for over 50% of the current account market.
• Loyalty reward programs and competitive pricing are the most important attributes determining NPS, despite loyalty rewards having the lowest net satisfaction.
• UK banks have done well coming out of the COVID-19 pandemic, with all of them either maintaining or increasing their TDA levels and all but one bank reducing their costs in 2021.

Reasons to Buy

• Identify the factors affecting growth prospects across the deposit, credit card, personal loan, and mortgage markets.
• Track competitor gains and losses in market share.
• Assess the financial performances of competitors.
• Receive detailed analysis of the drivers of customer advocacy.