Building societies on top for service, value and trust

Savers and borrowers with building societies are more satisfied than customers of other financial service providers, according to research from GfK NOP, published by the Building Societies Association.

In the mortgage market, 74% of customers at building societies are extremely or very satisfied, compared to 63% of customers at other mortgage providers. 67% of savers at building societies are extremely or very satisfied, compared to 53% at other savings providers.

The research also shows that building societies are perceived by their customers as outperforming banks on treating their customers fairly; providing better value for money and being more trusted to give good advice. This part of the research was conducted in October 2008, at the height of the instability in the financial markets.

Commenting on the survey, Adrian Coles, Director-General of the Building Societies Association, said: "For the second year running, this research shows building societies beat the banks in every aspect of customer service. Societies pride themselves in offering the best levels of service possible to their customers. As mutuals, they don't have any shareholders to please - they are accountable to the members.

"With household incomes being squeezed, consumers are looking for good value - this is an area where societies really excel over their plc counterparts. Recent falls in interest rates will make it even more important that consumers seek out the best deals on savings and mortgages."

Customer satisfaction

74% of building society mortgage customers were extremely or very satisfied, compared to 63% of borrowers with other institutions.

67% of savers with building societies were extremely or very satisfied, compared to 53% of savers with other institutions.

Value for money

67% of building society customers consider that their provider offers value for money, compared to 48% of bank customers.

32% of bank customers did not agree that their bank offered reasonable value for money, whilst only 10% of building society customers felt the same way.

Treating Customers Fairly

68% of building society customers agreed that societies treat their customers fairly, compared to 55% of bank customers.

29% of bank customers disagree that their bank treats them fairly.

This compares to just 7% of building society customers.

Trusted to give good advice

58% of building society customers agreed that they would trust their provider to give good advice. This compares to 50% of bank customers who felt the same way.

32% of bank customers would not trust their provider to give advice. 14% of building society customers felt this way.

Safety of deposits

69% of building society customers with a savings product felt their money was safe, compared to 64% of bank customers.

13% of building society customers who were surveyed did not feel that their money was safe, compared to 24% of bank customers.