Challenger banks think they're as good as the big guys

When it comes to customer service, customer satisfaction levels and innovating new services, challenger banks mostly believe they're at least as good as, if not better, than the Big Four.

The Big Four among banks are Barclays, HSBC, Lloyds and RBS.

The results were released by Aspect Software, which also says that the data is encouraging, but challengers still have a ton of work ahead if they really want to disrupt the industry.

Out of 100 polled decision makers, two thirds believe they're better at achieving consistently high customer satisfaction levels, as well as employee engagement.

More than half (59 per cent) think they're better at providing fast customer service, and 43 per cent think they're better at innovating.

Around half thought they were either the same, or worse than the Big Four, especially when it comes to new technology and mobile banking strategies.

“While absolutely subjective, understanding how challenger banks and building societies view their capabilities in relation to the Big Four can give us some important insight into where they are placing their emphasis when building their businesses,” said Peter Littlewood, Finance Solutions Consultant at Aspect.

“Many of these institutions were established in response to deficiencies identified in the traditional banking sector; namely, the Big Four’s inability to let customers transact with them in the ways that they want to and their historically non-customer-centric approaches. It should come as little surprise, then, that so many challengers believe that they are better at providing good and fast customer service, engaging their employees and developing innovative, Millennial-friendly services.”