High street banks beating new entrants for consumer trust
13 July 2015 | 12309 views | 3
Consumers still trust traditional high street banks more than alternatives such as supermarket banks, challenger banks or technology companies, according to research from MoneySuperMarket.
With technology companies beginning to enter the payments world with developments such as Apple Pay and Google Wallet, MoneySuperMarket asked 2000 consumers if they would trust a variety of traditional banks, supermarket banks and non-banking companies with their money.
However, despite the new entrants making headway, the big names of Barclays, NatWest and Santander all came out on top. More than a quarter (28%) of people scored these providers the highest, with a trust score of at least an eight out of ten. Amongst supermarket and online financial services companies, Marks and Spencer is viewed as the most trustworthy company, scoring at least seven out of ten with a fifth of all consumers, while Virgin Money followed closely behind with 21%.
At the other end of the scale, non-banking companies are the least favoured when it comes to consumer trust. Facebook scored a maximum of two out of ten in terms of trust from an overwhelming 61% of people, while two-fifths (40%) gave Google the same score. Only seven per cent would trust Facebook over a high street bank.
When asked if they would open a current account with a technology company such as Facebook, Amazon, Google or Apple, only one in ten said they would be likely to do so. This figure rises to a quarter of 18 to 34 year olds, but perhaps unsurprisingly drops to just three per cent of those aged 55 and over.
Kevin Mountford, head of banking at MoneySuperMarket said: “The traditional players still have the monopoly on the banking scene when it comes to consumer trust, with many people perhaps naturally cautious about the expertise and capability of new entrants. However, scandals such as mis-selling investigations and IT crashes evidently remain in the public’s mind, as both RBS and The Co-operative Bank came out as less trustworthy in comparison to the other banking giants.”