Confidence in the UK banking system is stabilising
Consumer confidence in the UK’s banking system is stabilising, according to new research from Ernst & Young.
Confidence in banks decreased in both 2011 and 2012. But in 2013 confidence began to stabilise – 52% of consumers said their level of confidence had not changed; 37% said their confidence decreased; and 11% said confidence increased – broadly double the percentage who said their confidence increased in 2011.
Despite this, banks are still struggling to build brand loyalty. In the low interest rate environment, consumers are highly price-sensitive and increasingly likely to change their banking provider because of rates and fees.
The study also reveals that 85% of UK consumers questioned trust their bank to some degree. But, of those, just 26% have complete trust; 59% have moderate trust – a neutral position that could swing positive or negative over time; and 15% of have minimal or no trust in their bank.
Influencing factors for distrust are as follows: for those with minimal or no trust the main driver is recent news articles (67%), followed by financial stability (51%) and interest rates on their accounts (49%).