The latest Business Banking Service Quality survey, carried out by the Competition and Markets Authority, highlights a noticeable change in how UK businesses are selecting their banking providers. Challenger banks continue to grow in popularity, while some of the more established high street names are seeing their positions slip.

Which banks performed best?

According to the survey, the top three banks for overall service quality were Monzo, Mettle and Starling Bank. These challenger banks attract business customers with their smooth digital platforms, quick account set-ups and easy-to-navigate online tools, helping to make everyday banking more efficient.

Interestingly, Handelsbanken secured fourth place. This was despite not scoring highly in the online and mobile banking category — reflecting its emphasis on personal service and relationship banking. The result indicates that although digital convenience is highly valued, there is still strong demand for human support and tailored advice.

Should you consider switching?

Changing to a bank that offers stronger digital services could save valuable time, not only on routine transactions but also in managing your finances overall. Some providers may also offer lower charges, more flexible lending options or more attractive interest rates, all of which can have a positive effect on your profitability.

Equally, a bank that understands your sector and provides proactive guidance can become an important partner in helping your business to grow.

That said, switching is not something to take lightly. The process needs careful management to avoid disruption for customers and suppliers, and not every digital-first provider delivers the full range of services that some businesses require.

Wider lessons for businesses

Although the survey focuses on banking, the results offer broader insights. The success of the challengers highlights the value placed on convenience, speed and simple digital tools. At the same time, the strong showing of a relationship-based provider like Handelsbanken demonstrates the ongoing importance of trust, personal interaction and bespoke support.

For any business, the balance between efficiency and personal service is crucial. It’s worth asking yourself: Are my systems straightforward for people to use? Do customers and staff feel supported and valued? Even incremental improvements in these areas can significantly enhance satisfaction and loyalty.

The business banking landscape is evolving, and this presents both opportunities and challenges. It could be the right moment to reconsider your own banking arrangements — or even to reflect on how your business is meeting changing expectations more broadly. Staying alert to these shifts can help ensure you remain adaptable and well-prepared for the future.

See the full results here: Business Banking Service Quality survey