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Banking customers vote with their feet

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11/07/2012
Consumer confidence in the banking sector has taken a nosedive following the banking sector's recent bad press, according to a poll by MoneySupermarket.

Almost a fifth polled said they had lost trust completely and as a result will look to move their account elsewhere.

A further quarter also declared they trust their banks less, but won’t switch as they view them as all the same, demonstrating that apathy amongst consumers still remains when it comes to switching.

Nearly one in ten would like to change their bank but think it would be too much hassle.

Kevin Mountford, head of banking at MoneySupermarket.com said: “It is not surprising the recent high profile issues in the banking sector has impacted the levels of trust consumers have towards their banks, with some choosing to take action as a result, but consumers should make sure they are moving for the right reasons.

“If you are unhappy with your bank, then jumping ship may not necessarily be the answer, especially if the deal you are on is a good one. Instead try and make the most of the products you have by being savvier and not paying over the odds in fees and charges.”

Consumers are being advised to consider whether their current account, for example, suits their needs; or whether the initial tempting offers on the accounts have changed over time.

In order to get the best value, consumers are urged to look around from time to time, in order to make sure that their banking and financial needs are being met by their bank.

However, a fifth of Moneysupermarket.com users state that they are happy with their existing provider.

Further, over 17% already mistrusted their banks anyway and their view has not changed either way since the turmoil, showing the low levels of bank trust that already exists amongst consumers.

Mountford continued: “It’s interesting that despite many consumers trusting their banks less, they are not planning on switching and many are put off by a belief that switching is a complex process. The reality is that switching is fairly easy, with many banks having dedicated teams to ensure the move runs smoothly.”

Recent banking scandals have included the LIBOR scandal (where traders fiddled the rate in which banks lend to each other), miss selling of payment protection insurance (PPI) and shareholder dissatisfaction with bumper bonuses being handed to execs despite poor performance from certain banks.

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