BBA wants banks to communicate more effectively with customers
June 2, 2008
The British Bankers’ Association has stated that banks in the UK need to communicate more effectively with customers, and need to keep customers informed of any changes as well as providing them with more information on the services and products available. According to the BBA banks need to make improvements when it comes to communicating with customers, so that customers are aware of what their banks offers and any up and coming changes.
Recent reports have shown that consumer confidence in the banking industry as a whole has plummeted over recent months, and improved communication could go some way towards increasing consumer confidence in banking. According to a senior official from the British bankers’ Association the banking industry is becoming increasingly complex, and this has heightened the need for banks to provide more comprehensive details to consumers on issues such as their procedures, regulations, changes, and services.
It is thought that one of the major causes of the drop in consumer confidence in the banking industry is the recent chaos at Northern Rock, where many consumers thought that their savings were at risk amidst rumours that the bank was going to fold. This resulted in the government increasing its savings guarantee to savers in the UK. However, this has done little to improve trust levels in banks amongst consumers.
The controversy over bank charges has also added to falling consumer confidence, with banks charging sky high fees for unauthorised overdraft use, and consumers struggling to reclaim these charges in many cases even though regulators have branded the charges unjust and unlawful. Consumers seem to have a slightly higher opinion of building societies compared to banks according to the recent report.
Recent addition
- Treasury clarified guarantee over savings
- New charge structure announced by Alliance and Leicester
- HSBC slated over misleading advertisement
- BSA claims building societies are not struggling like other lenders
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