You are here: Home - Saving & Banking - News -

Recent banking scandals turn customers onto building societies

0
Written by:
30/08/2012
Customers are increasingly favouring using building societies to conduct their financial affairs after recent scandals in the banking sector.

The GfK NOP survey of consumers found that the number of people who feel building societies value them as a customer is 22% points higher than banks, a figure that has risen dramatically since the previous survey in May, when the gap was 15% points.

Elsewhere, customers were asked if they could trust their provider to act in their best interests, with building societies and mutuals coming out 17% points ahead of their banking rivals.

When asked if their provider was honest and open with them, building societies were 11% points in front of banks.

Customers were also asked about the ethical standards their lender adhered to, with nearly two-thirds of respondents saying that mutuals had high ethical standards compared to just 50% for banks. A fifth of those polled said that they thought their bank had low ethical standards.

This follows an announcement by the Building Societies Association that building societies and other mutuals now constituted nearly a quarter of the total UK mortgage market, dramtically up on last year.

Hilary McVitty, head of external affairs at the BSA, said that the number of scandals in the banking sector had affected people’s confidence.

“We were not surprised to see that consumers’ views had changed in these three months, but we were rather taken aback by the degree of movement. Strong feelings are clearly being expressed here by consumers.

“These views are being backed up by action by more than a few, as evidenced by the sustained increase in mortgage lending and a healthy inflow of retail deposits in July announced today.

“Whilst mutuals are currently benefiting, their attention is not just on the present, but the future and continuing to deliver the products that UK consumers want with the service and behaviours that they expect.”

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
2201943-stressatwork
Free employee mental health support service launches

A free in-work mental health support service for employees who are experiencing mental health problems is being launched.

Close