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

Savers welcome ring-fencing of banks

Written by:
Savers are in favour of splitting up banks into separate retail and investment arms, and want more transparency regarding where their cash is invested.

According to a report published by the Institute of Consumer Service (ICS), 44% of UK consumers resent their bank ‘gambling’ with their money by investing it in capital markets.

More than four years after the run on Northern Rock, 21% still worry that their bank could go under.

81% want to know where banks plan to invest their money, and 69% say transparency would impact on their choice of bank.

Jo Causon, chief executive of the Institute of Customer Service, said:

 “Historically high street bank customers in the UK have been reluctant to move their bank accounts but this is changing.

“As consumers become more informed and discerning about where their money is invested, those banks that genuinely create a banking experience that is easy, jargon free and transparent are more likely to attract and retain their customers.”

UK banks responded to the report by threatening the end of free banking.

However, this does not sit happily with consumers, 73% of whom believe they shouldn’t have to pay for a standard current account.
An even higher proportion, 76%, believe there should be no charge for cashpoint withdrawals. As a result, 90% claim that they would consider switching provider for the sake of free banking.

Jo Causon, said:

 “Impending banking changes create a real challenge for banks. At a time when trust is at an all time low, banks need to seek competitive advantage by enhancing – rather than cutting back – their overall service offering and balancing their commitments to shareholders.”



Tag Box

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.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

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...

Money Tips of the Week

Read previous post:
Music to your wallet?

Heath Reidy investigates the investment potential of music festivals.