Worst bank is our own RBS

The first official ranking of lenders by the competition regulator, based on an independent survey of thousands of personal and small business customers, found RBS was the bank least likely to be recommended.

Just 49 per cent of retail customers and 47 per cent of businesses would recommend the 62 per cent state-owned bank, which has been condemned for its treatment of struggling small companies and come under fire for branch closures, along with other major banks.

The league table published by the Competition and Markets Authority ranked 16 lenders in areas such as online and mobile banking, overdraft services and services in branches. RBS came joint bottom in overall service quality with Clydesdale.

First Direct topped the table at 85 per cent, followed by Metro Bank and Nationwide building society. Sweden’s Handelsbanken, which began in the UK in 1982, came out on top in business banking service quality at 84 per cent.

The results must be prominently displayed in branches and on banks’ websites and apps.

The CMA has also asked the Financial Conduct Authority to make banks release further information to drive up standards.

CMA senior director Adam Land said: “For the first time, people will now be able to easily compare banks on the quality of the service they provide, and so judge if they’re getting the most for their money or could do better.”

The FCA’s Christopher Woolard said: “Getting a good deal isn’t just about pricing. It’s also important for customers to be able to judge the quality of service.”

RBS chief executive Ross McEwan said: “We welcome any initiative aimed at improving transparency and comparability.

“We are aware we have more work to do in order to improve our service standards and deliver a better experience for our customers.

“That is why we are investing in improving the products and services whether that’s through launching initiatives such as the UK’s first paperless mortgage or ESME, our digital lending platform for SMEs.”

Clydesdale said: “We strive to deliver the best customer service. We would like to have ranked higher as our customers are at the heart of everything we do.”