Trust levels in banks have reached new lows a report published by leading independent private bank Duncan Lawrie claims.
Recent research undertaken by the bank and conducted by YouGov shows that bonus culture and putting short term profitability ahead of customer welfare was the most significant contributor with recent banking scandals including the LIBOR-rate fixing scandal the secondary concern.
The poll of over 1,000 UK high net worth individuals to investigate their perceptions of the banking industry, revealed the extent to which the industry’s reputation has been damaged, measuring it against those other sectors, recently guilty of dishonest practices.
Results revealed that over four fifths (83%) of HNWIs believe the UK banking industry to be equally or more corrupt than politics and journalism, referencing the MPs' expenses and phone-hacking scandals respectively.
The shattered public perception of the banking industry is clearly conveyed in the survey results, along with a clear indication of the need for banking institutions to regain trust and reconnect with their customers.
Over three quarters (76%) of those surveyed said they would prefer personal banking where you know your bank manager to the modern ‘de-humanised’ approach.
Matthew Parden, managing director of Duncan Lawrie Private Bank, said: "The retail banking industry has changed beyond all recognition in the last three or four decades.
"Consumers have had enough. In this age of internet and mobile banking it may seem odd to talk about a return to old fashioned values, but that is what the sector has to do. We must again be seen as trusted advisers. The values that held resonance in the time of Captain Mainwaring’s branch at Walmington-on-Sea hold as much weight now. A return to personalised banking is long overdue.”
