VIDEO: Report reveals diminishing consumer faith in UK banking industry

A REPORT has revealed consumer confidence in the UK Banking industry has plummeted.

Consumer insight agency Gfk NOP found the number of people who say they no longer trust their bank has risen by more than a third, with just a quarter of people believing their bank has their best interests at heart.

They researched seven core service factors across 2,000 UK consumers in early May and July.

Stephen Mitcham, Chief Executive of The Cambridge Building Society, admitted banking scandals had damaged the industry’s reputation.

He said: “People are now starting to look for alternatives”

“There’s been this gradual drip-drip of negative stories that have the banks involved.

“We’ve seen PPI issues, the swap issues and the Libor scandal and people are saying there has to be something different.”

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Allegations of lax controls regarding money laundering and problems preventing people accessing their money were also cited as being to blame for these changing attitudes.

Between May and July this year, banks were beaten in 11 different areas of customer satisfaction by alternatives in criteria which included honesty and complaint handling.