A quarter of Brits would bank with Amazon
The wave of new entrants to the banking sector has created even more appetite amongst consumers for an alternative to the high street bank, according to research from uSwitch.com. And with the success of trusted retail brands moving into banking, the research suggests that if other much-loved high street brands followed they could mop up.
Three quarters of consumers (75%) would trust John Lewis with their banking needs, while competitors House of Fraser (25%) and Debenhams (23%) also prove popular. But while John Lewis and Debenhams have already dipped their toes into the financial services market, offering a range of insurance products, some consumers would even consider a brand with no experience in banking. One in four (25%) say they would be willing to bank with Amazon and one in ten (9%) would trust eBay.
The success of Tesco and Sainsbury's seems to have rubbed off on the sector - consumers would trust other supermarkets if they moved into banking too. One of the most trusted is Waitrose (46%), but Asda (36%) and Morrisons (26%) fare well too. Some are even willing to trust smaller, ‘value' supermarkets Aldi (9%) and Lidl (8%) to handle their banking needs.
Although high street banks have considerably more experience than the new players, over half of consumers (68%) believe the new kids on the block care more about their customers. And when it comes to banking, almost seven in ten (69%) think that supermarkets and retailers offer good customer service, while just over a third (37%) believe high street banks do.
High street banks also fall behind the rest of the competition when it comes to value for money. Worryingly, only one in ten (9%) consumers believe they offer the best value for money when it comes to banking, compared to supermarkets and retailers (53%).
Eight in ten (80%) consumers would consider switching to a new player. And the growing number of ‘alternative' banks and their competitive edge coupled with falling trust in high street banks, means that nearly half of consumers (49%) are more likely to move to a new entrant now compared to a year ago.
Michael Ossei, personal finance expert at uSwitch.com, says: "It's a telling reflection of the UK banking industry that consumers are willing to put their trust in brands that have no previous banking experience. Consumer confidence in banks has been battered these last few years and recent scandals and IT fiascos have done little to win customers back.
"While traditional high street banks are still generally viewed as the most secure and experienced providers to bank with, new entrants are hot on their heels and winning customers over with their untarnished reputations and promise of superior rates and customer service. Hopefully this will act as a wake-up call to the high street banks and will make them pull their socks up. If they do, increased competition could be great news for consumers."