British banks no longer trusted by over three in five Brits

Share Article

They may hold UK consumers' life savings and partially own most of their homes, but banks are no longer trusted by over 3 in 5 of Brits (62%), new research from Currencies.co.uk can reveal.

•    Over three in five Brits (62%) admit that they don’t trust banks, more than a third haven’t trusted them since the UK entered a recession three years ago

  •     Two in five (40%) have decided to move their custom elsewhere due to the negative publicity of the banking industry
  •     Three in five consumers (59%) feel that they have directly suffered as a result of bankers paying out large bonuses

They may hold UK consumers' life savings and partially own most of their homes, but banks are no longer trusted by over 3 in 5 of Brits (62%), new research from Currencies.co.uk can reveal. As many as one in three (36%) hasn’t trusted banks since the start of the recession in 2009, and only a tiny 6% still have complete trust in them, regardless of the recent crises.

40% have started to move their business away from banks due to negative media coverage, heralding the introduction of peer-to-peer lending companies, personal loan providers and currency specialists. Many of these types of companies commonly offer better rates of exchange or interest than banks as they focus their business operation in one area. Therefore, in a climate where consumers will work hard for the best deal, a further dip in trust for banks could prove fatal if the word on good deals spreads. Currencies.co.uk, has found that lack of trust in banks has caused a surge in new customer enquiries.

When asked why Brits no longer trust banks, the most common reason, according to 59% of those surveyed, was that they believe bankers pay themselves too much in bonuses and consumers suffer as a consequence. Additionally, almost a third (30%) states that the Libor rate fixing scandal affected their trust in banks.

Stephen Hughes, Director of Currencies.co.uk, said:

“With the high level of media attention given to the many scandals our banks have committed, it’s no surprise that people are taking notice and completely losing faith in the banking industry. Recent bonus scams and technical glitches appear to have been the final straw for many and they are rightly demanding more.

“Undoubtedly we are seeing a change in the financial services sector whereby dissatisfied customers are ditching their banks and it is encouraging that some people are wisely choosing specialists for transactions such as foreign exchange. Specialist currency exchange providers commonly beat bank rates as they can buy currency from a variety of sources. Unlike banks, specialist providers will negotiate on behalf of their customers to obtain the best exchange rates possible.

“Not only are banks letting their customers down but they’re also failing to provide them with the best exchange rates. A third of people surveyed use a currency exchange specialist and with tightened purse strings and a third quarter in recession, this figure could soon be much higher. Watch out banks, watch out.”

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Hannah Green

020 7360 7825
Email >
Visit website