BSA: Trust in building societies remains solid
Independent research by the Building Societies Association shows that trust in building societies is solid amongst the UK public in the face of the current, almost daily, diet of unfolding bank scandals. The survey amongst 2,000 UK adults shows that over the last month:
79% of consumers say that their trust in building societies has stayed the same or increased, whereas
66% of consumers say that their trust in banks has fallen
As a result, 16% of the customers of the big five banks say that they have already switched provider or are likely to do so.
Of those who said they were likely to switch their current account as a result of recent events:
24% said they would move to a building society (please note, building societies have less then 10% of the current account market)
47% said they would move to another big bank
21% said they would move to a small bank
3% said they would move to a credit union
2% said they would keep their cash at home
Of those who said they were likely to switch their savings account as a result of recent events:
36% said they would move to building society
38% said they would move to another big bank
15% said they would move to a small bank
6% said they would move to a credit union
2% said they would move to a peer to peer lender
4% said they would keep their cash at home
Commenting, Adrian Coles, Director-General of the Building Societies Association said: "It is clear, from the results of this survey and the direct experience of our members, that large numbers of consumers are now looking for a different approach to financial services. Many people are finding what they want at a building society, other mutuals or ethical banks.
"Of course we welcome the opportunity to communicate the difference that membership brings and to welcome new customers. My concern however, is that in the long term, if this crop of scandals at our banks continues both the economy and the financial services sector as a whole will be damaged. The balance between speed, transparency and probity in relation to these issues is a delicate one and we are relying on both Government and regulators to navigate carefully."
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Contact:
Hilary McVitty – 020 7520 5926 / hilary.mcvitty@bsa.org.uk
Notes to Editors
1. These results are taken from a survey conducted by Canadean Consumer for the Building Societies Association. The total sample size was 2,000 adults. Fieldwork was undertaken between 6-8 July 2012. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).
2. The Building Societies Association (BSA) represents mutual lenders and deposit takers in the UK including all 47 UK building societies. Mutual lenders and deposit takers have more than 32 million customers, total assets of over £375 billion and, together with their subsidiaries, hold residential mortgages of nearly £240 billion, 19% of the total outstanding in the UK. They hold more than £250 billion of retail deposits, accounting for 22% of all such deposits in the UK. Mutual deposit takers account for 34% of cash ISA balances. They employ approximately 50,000 full and part-time staff and operate through approximately 2,000 branches.
3. Photographs of Adrian Coles are available from the BSA press office, or from the Association's website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk
Katie Wise
Policy and External Affairs Officer
Building Societies Association
6th Floor, York House
23 Kingsway
London
WC2B 6UJ
Tel: 020 7520 5904
Email: katie.wise@bsa.org.uk
Web: www.bsa.org.uk
Twitter: @BSABuildingSocs
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