Customers are becoming happier with their internet banks largely as a result of the improved speed and usability of online banking websites, said a survey today.

Virtual Survey's online banking survey which polled over 5,000 customers on non-bank UK websites between April and June showed that 65% of customers rated their online bank as excellent or very good in the second quarter of this year compared with 58% the same time last year. This was up from 49% the year before.

Ratings were given on a points system with 5 being excellent and 1 being poor. The average score for all banks came out as 3.8, though Smile and First Direct came top for customer satisfaction with overall scores of 4.4.

Alliance & Leicester and Woolwich were bottom of the table with scores of 3.3, although Virtual Survey said that they had shown signs of improved performance.

The group said that the range of products and services offered online had also improved. In particular, it said, customers rated online money transfer, direct debit and standing order functions more highly than during the same period last year.

Changes to the Banking Code to be implemented in August state that should a customer want to switch providers, the transferring bank must now pass on all direct debits and standing order information to the new one within three days. This will decrease from the current five days required.

How banks rated

Virtual Surveys' Online Banking Survey (V-OBS) League Table for Q2/2003

Bank Mean Score

All Online Banks 3.8

Smile 4.4

First Direct 4.4

Co-operative 3.9

RBS 3.9

Nationwide 3.9

HSBC Bank 3.8

Cahoot 3.8

Egg 3.8

IF 3.8

Halifax 3.7

Barclays 3.7

Lloyds TSB 3.6

NatWest 3.5

Abbey National 3.4

Bank of Scotland 3.3

Woolwich 3.3

Alliance & Leicester 3.3