Online banks failing to match high street brand values

Online banks failing to match high street brand values

Online bank brands are failing to gain the same trust as established UK high street bank brands, according to new ICM research from brand consultants Henrion Ludlow Schmidt.

The survey, which sampled 1000 consumers nationwide, says that trust in established, high-street bank brands has soared from 73% to 82% since consumers were last questioned in 2000, while trust in more recently branded offerings, such as Egg, Smile and Cahoot, has remained absolutely static at seven per cent, despite high-profile launches and publicity.

In the 18-24 age group, where allegiance to the new brands would be most expected, trust has actually declined from 15% to 6%.

Online banking is currently growing rapidly. According to Datamonitor, there were 2 million users of e-banking channels in the UK in 2000 and this had risen to 3.9 million by 2002.

"Consumers clearly appreciate traditional values in uncertain times," says Chris Ludlow, co-founder of Henrion Ludlow Schmidt. "While Internet banking use has grown dramatically, this research provides evidence that headline-grabbing new names and styles can't hope to make up for the security and trust built up by long-established brands.

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