Banks act in their own interests, say consumers

Mon 08 Feb 2010

Many members of the public are not satisfied that banks have their customers' best interests at heart, according to a new poll.

A survey by consumer group Which? found that 96 per cent of respondents believe banks act more in their own interests than in those of their customers.

Meanwhile, more than eight in ten people stated banks are not changing for the better in the wake of the financial crisis.

Consumers are therefore advocating steps such as breaking up the banks, with 74 per cent saying this could be a good way to create more competition in the sector.

Meanwhile, 47 per cent said they think the retail and wholesale side of banks should be separated.

This comes amid assurances from Gordon Brown that the UK is working with other countries to develop a new system for remuneration in banking.

Speaking to the Guardian, the prime minister said world leaders are coming to round the idea of imposing a levy on banks in order to manage risk in the future.

Jim Rai, a partner with Winckworth Sherwood said: "It is clear that there has been a significant loss of confidence in banks who are ultimately seen as trustees acting in the best interest of those beneficiaries whose funds they hold.

"The banks have a high duty of care in dealing with their clients' financial affairs and should do all in their power to show that they are acting in good faith with transparency and integrity, which will help in building up a stronger relations."