Enough is Enough - Banking Customers Vote with their Feet

Jul 11, 2012, 12:52 ET from MoneySupermarket.com

CHESTER, England, July 11, 2012 /PRNewswire/ --

  • A fifth polled have lost trust in their bank and will switch elsewhere
  • 17 per cent already mistrusted their banks

Following the recent turmoil in the banking sector, MoneySupermarket polled its site users on whether events have affected the way they view their bank, and over half (54 per cent) stated it had impacted.

Almost a fifth (18.4 per cent) polled said they had lost trust completely and as a result will look to move their account elsewhere. A further quarter (27.1 per cent) 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 (8.5 per cent) would like to change their bank but think it would be too much hassle.

However, not everyone has had a change of view, with a fifth (20.4 per cent) of site users stating they are happy with their existing provider. Interestingly, over 17 per cent 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.

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 should consider whether their current account, for example, suits their needs; or whether the initial tempting offers on the accounts have changed over time. Although consumers may not wish to switch current accounts on a regular basis, it is important to review your account from time to time to make sure it suits your financial situation; otherwise you may fail to get the best value.

"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. Consumers need different things from their current account, some are always in credit and will find that cash incentives are the best way to maximize returns, but others will need to consider various overdraft charging structures. Packaged accounts provide a one stop, convenient solution but make sure you will make the most of the benefits on offer otherwise you may be paying far more than you need to. The key is to think about how you use your current account, and then shop around for the deal that best suits your needs."

Notes to editors:

*MoneySupermarket webpoll

Banking turmoil: has it affected the way you view your bank?

  • Yes - I've lost trust completely and will move my account - 18.4%
  • Yes - I trust them less but won't switch as they're all the same - 27.1%
  • Yes - I'd now like to change bank but it would be too much hassle - 8.5%
  • No - I'm happy with my bank - 20.4%
  • No - I always mistrusted banks anyway - 17.3%
  • No - the issues aren't down to banks' disregard for customers - 7.0%
  • I don't know - 1.3%

Total votes: 2,725

MoneySupermarket.com compares (at 20th June 2012)

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For further information please contact:

Paul Lawler
PR Manager Financial Services

SOURCE MoneySupermarket.com