Speakers debated on ‘who is managing who’ with comparisons made to flocks of birds on how groups have acted to work together. Communication via networking sites such as Facebook and the use of e-mail and mobile phones has led to consumer groups gaining power and forcing change.
A particular example was given, where HSBC added a 9.9 per cent interest rate to student loans. The establishment of a Facebook group with 5,000 members led to a re-think and change in policy by the bank.
Moneyfacts chief executive officer, Paul Pester, said: “The question is, who is managing who? The world has changed significantly and not just for banks and building societies, as we now face groups of customers who can form quickly and create immense pressure.”
Philip Machin, market analyst consultant with CACI, said: “The balance of power has moved to the consumer over the past few years as the consumer is remortgaging and making it more difficult for lenders to tie consumers in for the long term.”
Rachel Le Brocq, press and public affairs officer at the Building Societies Association, said: “Consumers have always been very influential and the increased use of the internet means this influence has heightened.”
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