BSA: Mutuals retain customer service crown

BSA: Mutuals retain customer service crown

BSA: Mutuals retain customer service crown

Mutuals have consistently outperformed plc banks across various aspects of customer service, including treating customers fairly, value for money and being trusted to give good advice.

These are the findings of independent research from GfK NOP, published today by the Building Societies Association (BSA).

The research shows savers and borrowers with mutual financial providers are more satisfied than customers of other financial providers. 70% of mutual mortgage customers were extremely or very satisfied, compared to 63% of borrowers with other institutions. 59% of savers with mutuals were extremely or very satisfied, compared to 47% of savers with other institutions.

Customers were also asked their opinions on eleven separate aspects of service, and mutual institutions out-scored their plc counterparts in every area, some by very significant margins.

Commenting on the survey, Adrian Coles, BSA Director-General, said:

“Mutual organisations have continued to deliver better levels of service to their customers than their plc rivals, a fact that has been corroborated again by independent research. The last few years have been some of the most turbulent for financial firms, so it’s great to see mutual organisations flying the customer service flag with such consistency.

“Providing a high level of customer service is inherent to the mutual model – the institution’s core purpose is to serve its owners, who are also its customers. This contrasts with institutions that are owned by external shareholders.”

Summary of results

Customer satisfaction
¿ 70% of mutual mortgage customers were extremely or very satisfied, compared to 63% of borrowers with other institutions.
¿ 59% of savers with mutuals were extremely or very satisfied, compared to 47% of savers with other institutions.

Value for money
¿ 59% of mutual customers consider that their provider offers value
for money, compared to 40% of bank customers.
¿ 40% of bank customers did not agree that their bank offered reasonable value for money, whilst only 14% of mutual customers felt the same way.

Treating Customers Fairly
¿ 63% of mutual customers agreed that their provider treats their customers fairly, compared to 47% of bank customers.
¿ 33% of bank customers disagree that their bank treats them fairly.
This compares to just 10% of mutual customers.

Trusted to give good advice
¿ 59% of mutual customers agreed that they would trust their provider to give good advice. This compares to 47% of bank customers who felt the same way.
¿ 33% of bank customers would not trust their provider to give advice. Only 13% of mutual customers felt this way.

Support in financial difficulties
¿ 46% of borrowers from a mutual institutions felt their provider would be supportive if they got into financial difficulty. This compares to 41% of bank borrowers.
¿ 32% of bank customers did not agree that their provider would be supportive compared to just 18% of mutuals’ customers.

~ Ends ~

Notes to editors

1. A copy of the research can be viewed here

2. The satisfaction questions were asked via GfK NOP’s Financial Research Survey which interviews approximately 5,000 individuals aged 16 or over each month across Great Britain.Questions on the eleven aspects of service were posted in GfK NOP’s omnibus survey where the questions were asked face-to-face to 1,968 adults aged 16 or over between 11 -16 March 2010. In all this research, respondents were asked to identify with which brands they had savings or a mortgage. The researchers then allocated the responses to the appropriate type of institution to avoid any confusion about which are banks and which are building societies.

3. The Building Societies Association (BSA) represents mutual lenders and deposit takers in the UK including all 51 UK building societies. Mutual lenders and deposit takers have total assets of almost £375 billion and, together with their subsidiaries, hold residential mortgages of almost £240 billion, 19% of the total outstanding in the UK. They hold over £245 billion of retail deposits, accounting for just under 22% of all such deposits in the UK. Mutual deposit takers account for about 36% of cash ISA balances. They employ approximately 50,000 full and part-time staff and operate through approximately 2,000 branches.

4. Photographs of Adrian Coles are available from the BSA press office, or from the Association’s website at www.bsa.org.uk or www.headlinemoney.co.uk

Rachel Le Brocq
Press and Public Affairs Manager
The Building Societies Association
6th Floor, York House
23 Kingsway, London
WC2B 6UJ

Tel: 020 7520 5905
Mobile: 07773489644
Fax: 020 7240 5290
www.bsa.org.uk

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