It is no secret that loyalty to banks and trust in banking institutions have both decreased since 2008. In the years since, traditional banks have been fighting alongside newcomers and other entrants into the sector, like supermarkets, to regain consumer trust and brand advantage.

Industry, a City-based design firm launched the Industry Benchmark of UK banks this November. The research found that brand experience was the root of customer satisfaction, loyalty and recommendation. Within that, factors like customer service and name recognition are relevant as well.

In terms of brand experience, only 3% of respondents feel let down by their bank’s brand contract. All respondents cited trust as the most important factor in shaping brand experience.

When scoring customer service, the four top performers were Metro Bank, which was founded in 2010, First Direct, which underwent a customer-focused repositioning this year, Nationwide, a perennial favourite and The Co-Op, a newly reorganised entity. Barclays drew up in last place with 11%. These banks also ranked highly in trust, though 28% thought Metro Bank would not be around in 10 years.

Sholto Lindsay-Smith, partner at Industry, says, “Whilst consumers are aware of the switching guarantee they do not see any clear or obvious choice of bank to switch too. They also still have underlying concerns about the amount of hassle and risk involved in switching. The strategic opportunity for banks is to develop a differentiated proposition, which is likely to be built around service and technology innovation.”

Banks have become difficult for customers to distinguish between on the basis of services rendered. What it comes down to are brand experience and trust. For financial institutions still trying to find their way post-recession, the key to regaining these factors may be to examine their brand proposition and adopt a somewhat differentiated stance.

Apps like Barclays Pingit or seven-day service at Metro Bank help to do so. As does an adherence to personal service, such as the promise made by the new TSB Bank. Yet traditional banking may become less popular if trusted websites like Paypal and Google get into the banking game.