Santander was rated bottom, according to a new report by Which?

Santander (LON:SANB), Lloyds TSB (LON:LLOY), Royal Bank of Scotland Group plc (LON:RBS) and HSBC Holdings plc (LON:HSBA) are rated among the worst banks for customer satisfaction, according to new research by Which? Its members rated 28 banks and building societies for customer satisfaction across current accounts, mortgages, savings accounts and credit cards, with none of the biggest high street banks featuring in the top 15.

Santander was rated bottom, with an overall customer score of just 41% while taxpayer-backed banks Lloyds TSB, Halifax, Bank of Scotland, Royal Bank of Scotland Group plc as well as and HSBC Holdings plc were all rated poorly.

First Direct, the online bank, came top for customer score with an overall rating of 84%, followed by The Co-operative Bank plc (LON:CPBB).

Continuing lack of transparency

Which? says that banks' ability to keep their customers happy isn't reflected by their share of the market. The four banks with the highest customer scores for current accounts control just 6% of the current account market, while the four with the lowest scores control 38%.

Which? chief executive, Peter Vicary–Smith, says: "The Independent Commission on Banking has acknowledged that the market isn't competitive and consumers are infuriated by poor service. The Government must be clear how it will create more competition when it sells our stakes in Lloyds, RBS and Northern Rock. The industry must be referred to the Competition Commission if the market doesn't improve.

"The high street is dominated by banks that have a shocking record for customer satisfaction – what more proof do we need that the market isn't working? We will only have a truly competitive market when banks are made to face up to a simple choice - either look after your customers or be prepared to lose them."