Following the recent moves of large UK retail brands into financial services, moneysupermarket.com conducted a study of consumer attitudes towards the increasing trend of major retail and supermarket brands moving into banking.
The research found that more than one in ten (11%) feels that ‘supermarket brands are taking over our lives and should stick to more traditional products', and a further 30% feel these brands ‘have already gone too far and should stop expanding'. However more than a third (37%) are quite happy with the growth and expansion of major supermarket brands, with one in five saying they can get a cheaper deal for a range of products with a supermarket and 17% happy to be able to get everything from one place.
The study found that, despite a tough period for the reputation of the banking industry, just 4% of UK adults would trust a supermarket brand more than a bank to look after their finances, compared to 27% who say they would trust a traditional banking brand more than a supermarket. A further one in five say they would not trust a supermarket brand at all to look after their finances. 14% simply don't trust any big company with their finances.
The research has uncovered the area in which ‘supermarket banks' are perceived as being better than traditional banking brands - providing good value products (e.g. cheaper insurance premiums, higher savings rates and lower mortgage rates). One in five of those surveyed felt a ‘supermarket bank' would offer better deals on their products than traditional high street banks. This compares to just 9% who felt a bank would be more likely to offer the better value products. But good value rates are obviously not key as the vast majority said they are unlikely to go to a supermarket brand for any financial product.
Of all financial products, people would be more willing to take out a credit card from a supermarket brand (24%) closely followed by general insurance (23%). Only 15% would be willing to take on a savings account with a supermarket brand, 11% would take on a current account, 10% would buy life insurance and just five% would take out a mortgage with a supermarket bank.
