New research from online financial services comparison site, MoneySuperMarket has shown that despite a new influx of providers in the retail banking industry, established providers still hold the critical edge in consumer trust. 2000 consumers were asked if they would trust a variety of traditional banks, supermarket banks and non-banking companies with their money as part of the survey.
According to the research, established providers like Barclays, NatWest and Santander scored highest with a trust score of at least an eight out of ten among 28% of respondents. Among the new entrants and alternative providers, well known British brands are considered more trustworthy than international brands. Amongst supermarket and online financial services companies, Marks and Spencer is viewed as the most trustworthy company, scoring at least seven out of ten with a fifth of all consumers, while Virgin Money followed closely behind with 21%.
Kevin Mountford, head of banking at MoneySuperMarket commented on the results of the survey saying,
“The traditional players still have the monopoly on the banking scene when it comes to consumer trust, with many people perhaps naturally cautious about the expertise and capability of new entrants. However, scandals such as mis-selling investigations and IT crashes evidently remain in the public’s mind, as both RBS and The Co-operative Bank came out as less trustworthy in comparison to the other banking giants.”
With only 7% of respondents saying they would trust Facebook over a high street bank and Google obtaining similar scores it is clear that new entrants and particularly non-traditional retail banking providers face an uphill struggle to win over British consumers. With concerns also expressed with Apple Pay in another recent survey by Forrester it is clear that despite best efforts from regulators, it will be difficult to dislodge the traditional banks from the top position.
Overview by Tristan Hugo-Webb, Associate Director, Global Payments Advisory Service at Mercator Advisory Group
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