UK consumers not very trusting with banks
The recent turmoil in the UK's financial markets, fuelled by the credit crunch that originated from the sub-prime mortgage markets in the United States, have hit the nation in a number of ways, one of which seems to be an decrease in the level of confidence and trust that consumers have in banks and financial institutions. Confidence and satisfaction with banks had already taken a knock as a result of the bank charges row, but consumer confidence in this sector seems to be dwindling further according to recent figures.
A recent survey showed that many consumers in the UK kept money hidden away at home, and although some stated that this was for increased accessibility and convenience, many others stated that they did not trust banks with their savings. Much of this mis-trust is thought to have stemmed from the recent Northern Rock crisis, where many customers had to battle to withdraw their money amidst fears that the bank was on the verge of collapse after it was found to have gone to the Bank of England for a loan.
One industry official stated: "The Northern Rock situation has contributed to the low levels of trust that the British public has in companies that look after their money." The survey was carried out by Teamspirit, and according to the results all areas of finance, including banking industries, have been affected by this tumble in consumer confidence. It was found that although consumers seemed to be more trusting of building societies than banks, trust levels were still low with under 50% of consumers feeling that they could trust or have confidence in banks and building societies. Online banking has also taken a hit, with just a quarter of consumer now stating that they have confidence in online banking.
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