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A mortgage with your soft furnishing? John Lewis Bank would be welcome say Brits.

Lucinda Beeman
Written By:
Lucinda Beeman
Posted:
Updated:
05/12/2014

As trust in challenger banks grows, a full three quarters of Brits say they would be comfortable banking with John Lewis if given the option.

According to research by uSwitch.com four in ten people said they are more likely to bank with a new entrant to the industry than they were a year ago, with a quarter saying that these ‘challenger’ banks have learned from the mistakes of their traditional counterparts.

Valuing financial security, reputation and competitive rates in their choice of bank, 30 per cent would trust Debenhams and 27 per cent would trust they hypotetical House of Fraser Bank with their finances. Almost half (45 per cent) said they would trust a bank associated with Waitrose, more than rivals Morrisons (18 per cent) or Aldi (12 per cent). John Lewis was by far the most trusted brand, with 77 per cent saying they would be comfortable putting their money in the retailer’s hands.

David Mann, head of money at uSwitch.com, said: “It’s clear that consumers want to see the established banks put under more pressure to provide better rates, rewards and services. The reality is that if these traditional lenders don’t start upping their game, they may find themselves sitting on the side lines when the whistle blows.

“New entrants are a catalyst to drive change in the market, so it’s great to see them continuing to challenge the dominance of the big four by bringing competitive products and services to the table and providing better value for customers. However, it’s important to remember that competition needs to be driven by better banks, not just more banks.”