People in the UK are more disillusioned with the banking sector than ever before, five years on from the start of the global finance crisis, according to new research.
As the parliamentary inquiry on banking standards prepares to get underway, a new Which? survey has found that 71% of people don’t think UK banks have learnt their lesson from the financial crisis – up from 61% in September 2011.
Consumers also have low expectations that the inquiry will lead to change, with only 26% confident that it will lead to positive improvements in UK banks.
Since the start of the financial crisis consumers have been bearing the brunt of the recession with the Which? latest wellbeing survey showing that nearly half are worried about mortgage rates (45%) and the level of their household debt (42%).
Which? is calling for the banking inquiry to produce tough new proposals to force banks to work better for consumers by tackling the lack of culture and competition in banking.
Meanwhile, 84% of people think that the banks have not done enough to change the banking industry to ensure another credit crunch does not happen again – an increase from 76% in September 2011. 71% think the banking culture hasn’t got any better since the start of the credit crunch.
In addition, 50% of people think that the government’s handling of the banking industry has also got worse, while 80% think there is a deeper problem with the culture in banks than just a few individuals making bad decisions.
“Five years on from the beginning of the financial crisis, public confidence in the banking industry is at an all time low, with a series of scandals exposing mis-management and corruption at the very heart of the banking system that have cost UK consumers dear,” said Which? chief executive Peter Vicary-Smith.
“The parliamentary banking inquiry must produce proposals for fundamental change to the culture and practices of the banks and put the best interests of consumers back at the centre of reforms. Nothing should be off the table if the Government is to rebuild consumer confidence in this essential service.”
