A consumer group has launched today which will rate banks and insurers as part of a campaign for a fairer financial services market.
Fairer Finance will publish bank and insurer ratings on its website based on customer perception, complaints handling and transparency, as measured by independent consumer polling and complaints data obtained from the Financial Ombudsman Service.
Top-rated companies will be awarded a gold, silver or bronze Fairer Finance ribbon, denoting companies that treat their customers well.
The group receives various forms of revenue or funding, including commissions from comparison websites it refers consumers on to, although it says such payments are not essential to having a website recommended.
Fairer Finance also receives referral payments from some banks and insurers as well as through fee-earning consultancy services to financial service providers.
The group was founded by former Which? Money editor and head of money content James Daley and think tank director Andrew Freeman, who previously spent 14 years writing for The Economist.
Fairer Finance founder and managing director James Daley says: “Comparison sites have made it much easier for people to shop around for a good price on insurance and banking products. But price is only half the picture. How do you know that your cheap insurance policy is actually going to pay out? Or if you are switching bank, how do you know that the staff will be friendly, and the account will be good value?
“By collating the views of almost 10,000 banking and insurance customers, and analysing each company’s record on complaints handling and transparency, we hope to help consumers fit in that last important piece of the jigsaw.”