The impact of future rate rises needs to be communicated properly to customers, according to the head of RBS and NatWest banks.
In a speech to delegates at the British Bankers’ Association conference, RBS Group chief executive Ross McEwan said re-earning the trust of customers would depend on the way in which the banking sector handled future rate increases for homeowners, businesses and savers
Mr McEwan said the banking group was investing thousands of pounds in a study to help discover how people access, assess and act on information about interest rates in the economy.
He said thousands of personal and business customers would be interviewed, and the research would be published next year.
Mr McEwan added: “While the combination of falling unemployment and falling inflation makes calling the timing of any increase in the base rate very difficult, we know it is something very much on the minds of our customers. Recent speculation that rate rises may be pushed back will not remove worry.
“But when you consider that we haven’t had a rate increase since 2007, and you consider that over half of our RBS and NatWest mortgage customers have never experienced a base rate increase with us, and you realise that industry-wide there are over 1.5 million borrowers who bought their house after 2007 and have never experienced a rate increase.”
