Consumer Confidence In Banking Takes A Hit

Consumer Confidence in Banking Takes a Hit

A recent survey has shown that consumers' confidence in banks has taken a true hit, with one in every of the key causes of this decreasing confidence thought to be the recent state of affairs with Northern Rock. According to the results of the survey shut to twenty fifth of Brits state that they do not trust lenders, and fewer than five hundredth thought that prime street banks might be sure. The turmoil and chaos that erupted when Northern Rock was found to own taken a loan from the Bank of European country, fuelling rumors of a close to collapse and leading to several of the bank's one.5 million savers retreating billions of pounds price of savings.

As results of this case the Bank of European country has stepped up assurance over the guarantee of savings of Northern Rock customers, furthermore because the savings of shoppers with alternative banks that is the same state of affairs. However, it appears that these assurances have done nothing for client confidence in banking; with over one-half stating that they now not trust street banks.

The survey discovered that of the 2484 folks interviewed solely forty sixth currently trust street banks. Building societies fared to a small degree higher, with forty eighth expressing confidence in building societies. On-line banking has conjointly taken a knock, with consultants stating that reduced access to on-line bank accounts by Northern Rock customers conjointly touching this space of banking. Solely twenty fifth of customers currently trust on-line banking per the survey results.

One business skilled declared that client confidence in banking and finance was already fairly low, and supplemental that the recent turmoil with Northern Rock has contributed to the current lack of confidence. It’s not simply the banking system that has taken a knock, however, per professionals. Lenders across the total money sector are full of lower levels of client confidence. It’s thought that this might be because the results of issues throughout the total of the money sector that has stemmed from the squeeze sparked within the sub-prime sector within the Unites States that has resulted in international repercussions.