Banks take a popularity hit over Libor
Savers’ opinion of banks has diminished as scandals over Libor fixing and money laundering have broken, research from the Building Societies Association has found.
The poll, conducted by Canadean Consumer from among 2000 adults in the UK, found that 79 per cent of consumers said their trust in building societies has remained the same or increased, whereas 66 per cent of consumers said their trust in banks has fallen.
As a result of this drop in confidence, 16 per cent of the customers of the big five banks say that they have already switched provider or are likely to do so.
Of those who said they were likely to switch their current account as a result of recent events, 24 per cent said they would move to a building society.
Some 36 per cent of savers said they would consider switching their savings account to building societies or mutuals.
Mark Ireland, financial planner for Stevenage-based Richmond House Financial Services, said: “Consumers benefit from competition across the banking sector, but what we’ve had over recent years is a mass consolidation across the high street with many of the traditional names in banking swallowed up into larger banking groups.
“Scandals which grab the headlines continue to reduce confidence.
“Is it then any wonder that savvy customers look to move to other providers?
“The traditional building society model fits the bill nicely for many - although savers are also searching for decent interest rates, so societies must deliver more than just a promise to be less corrupt.”