It’s hard to encourage the average U.S. taxpayer that banks that are “too big to fail” deserve their trust. The outcomes are easy to see in recent customer confidence polls, suggests Bankrate. Polls like the biannual Index of Bank Sentiment by consulting firm BAI & Finacle asked consumers “Do you trust your bank?” and customers replied with a resounding “No.” Bankers surveyed in that same poll seemed oblivious to the truth, as they trusted that consumers trust them.
Consumer and banker opinions divided
There was an Index of Bank Sentiment survey done. Over 2,500 U.S. banking consumers were surveyed in it. A huge divide, not difference of opinion, was shown with the gap between consumers who trusted their bank (77 points) and banks that assume they’re trusted (121 points), according to results. One hundred points on either side would look good. This would show reasonable confidence.
Some financial experts believe that the rise of non-traditional consumer credit products like payday loans supports the findings of the BAI & Finacle survey. It makes sense that a customer may be more interested in small loans at other financial institutions if they answer “Do you trust your bank” with no.
Trust not needed by banks
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. Forty percent felt their bank was not looking out for their best interests.
About 85 percent of respondents did not think financial institution fees should be required for a checking account at all. A mere 44 percent found current bank fees to be reasonable.
Current Fortune 500 list banks
While community banks and credit unions have become increasingly popular with customers, large commercial banks still reign supreme when it comes to capturing consumer business. There were 20 commercial banks on the recently released Fortune 500 list of top United States businesses while the top 100 had seven commercial banks. When it came to the commercial banks, Bank of America Corp., was first while being ninth on the Fortune 500 list. The top five included 13th J.P. Morgan Chase & Co., 14th Citigroup, 23rd Wells Fargo and 54th Goldman Sachs Group.
How other financial service businesses do with U.S. customers
Investment brokers and pay day loan corporations both are in the world of financial service corporations. This is outside of the banks. There is the Edelman Trust in United States Financial Services Survey on top of the BAI & Finacle survey. It showed that about half of customers trusted their financial service business less than they did in 2009 last 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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