Hundreds of thousands of customers have moved their current accounts out of the big 5 banks in 2012 as public confidence in the British banks sector collapsed in the wake of a string of scandals.
These figures come following a report from the Banking Commission whose investigations ‘…revealed a culture of culpable greed, far removed from the interests of bank customers, corroding trust in the entire financial sector.’
According to evidence received by Move Your Money, building societies, credit unions and co-operatives have all reported a sharp rise in new business over the past 12 months. 500,000 people moved in the first half of this year. In the last quarter Building societies report a 78,000 increase in savings accounts. The Cooperative Bank has seen a jump of 43% in new accounts in the last year and Credit Unions have seen 20,000 new members.
Whilst a recent YouGov poll shows that as many as 14 million people could switch accounts in 2013 as new regulation and comes in which makes switching accounts easier. Almost one in three of UK high street bank customers said that they would be very or fairly likely to switch providers if the process of moving their primary current account was made easier.
“Public trust in the big banks has collapsed. The reputation of one of our leading industry’s is in tatters. Ultimately customers are on the front line of the battle to save British Banking, by moving their money to banks which are fair and transparent they are forcing banks to think twice about the way they behave. Cultural change doesn’t come from Whitehall or the boardroom, it comes from people realising the power of what’s in their pockets. ” said Laura Willoughby MBE, Chief Executive of Move your Money.