Whilst confidence in banks has plummeted, a survey of 2,000 adults has shown trust in building societies remains solid.
Independent research by the Building Societies Association shows that
– 79% of consumers say their trust in building societies has stayed the same or increased, whereas
– 66% of consumers say that their trust in banks has fallen
16% of the customers of the big five banks say that they have already switched provider or are likely to do so.
Of those who said they were likely to switch their current account as a result of recent events:
o 24% said they would move to a building society (please note, building societies have less than 10% of the current account market)
o 47% said they would move to another big bank
o 21% said they would move to a small bank o 3% said they would move to a credit union
o 2% said they would keep their cash at home
Of those who said they were likely to switch their savings account as a result of recent events:
o 36% said they would move to building society
o 38% said they would move to another big bank
o 15% said they would move to a small bank o 6% said they would move to a credit union
o 2% said they would move to a peer to peer lender
o 4% said they would keep their cash at home
Adrian Coles, Director-General of the Building Societies Association said: "It is clear, from the results of this survey and the direct experience of our members, that large numbers of consumers are now looking for a different approach to financial services.
“Many people are finding what they want at a building society, other mutuals or ethical banks.”
Mr Coles was keen to stress that whilst they welcome any influx of new customers, the underpinning problems hurt the entire financial services sector and must be addressed.
