Few U.S. customers trust their banks anymore, according to studies. This isn’t a difficult conclusion to come by, writes Bankrate. Polls like the biannual Index of Bank Sentiment by consulting firm BAI & Finacle asked consumers “Do you trust your bank?” and consumers replied with a resounding “No.” Bankers surveyed in the same poll seemed oblivious to the truth, as they trusted that consumers trust them.
Bankers and customers think differently
The Index of Bank Sentiment survey polled a large group of bankers and more than 2,500 U.S. banking customers. The results suggest that there is too huge of a gap between the 77 points of consumers that trust their banks and the 121 points of bankers that think consumers trust them. It was not just a difference of opinion that was taking place. A mark of 100 points for either side would have indicated reasonable confidence.
These findings in the BAI & Finacle survey are well supported. The rise in non-traditional customer credit products supports this, including payday loans increasing. It makes sense that a customer could be more interested in small loans at other financial institutions if they answer “Do you trust your bank” with no.
Perception does not involve trust
The Index of Bank Sentiment survey showed that 63 percent of respondents felt their banks were not trustworthy. Still, 64 percent said that a “good image and reputation” was still shown with their bank. Then another 40 percent said their banks were not interested in their best interest.
About 85 percent of respondents didn’t think bank fees should be required for a checking account at all. Banks were considered reasonable by 44 percent.
Banks considered Fortune 500 banks
While community banks and credit unions have become increasingly popular with customers, large commercial banks still reign supreme when it comes to capturing customer business. According to the recently released Fortune 500 list, 20 commercial banks cracked the list of top U.S. corporations, with seven in the top 100. Bank of American Corp. ranked first among commercial banks, and ninth overall on the Fortune 500. J.P. Morgan Chase & Co. (13th overall), Citigroup (14th), Wells Fargo (23rd) and Goldman Sachs Group (54th) rounded out the top five.
Many businesses with financial services and United States opinion
Investment brokers and cash advance businesses both are in the world of financial service corporations. This is outside of the banks. Expanding upon the BAI & Finacle survey, The Edelman Trust in United States Financial Services Survey found that almost half of consumers polled trusted their financial service business less in 2010 than the previous year. About 20 percent of respondents said that they thought this was because financial services industry was responsible for the recession while 46 percent thought that it was because of corporate greed.
Articles cited
Bankrate.com
bankrate.com/financing/banking/do-you-trust-your-bank/
Shared Financial Success
sharedfinancialsuccess.com/fortune-500-who-should-you-trust-with-your-money/
Author Ramit Sethi on ways banks nickel and dime you
youtube.com/watch?v=b1wQYXYbxDs
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