The economic news could hardly be worse, but after weeks of protest outside St Paul’s Cathedral against corporate greed, economic inequality and social injustice, a debate has begun that is long overdue.
Bob Diamond summarised the problem in the inaugural BBC Today business lecture when he said: “The only way that banks will win back the public’s trust is to become better citizens. That starts with how we behave, and in demonstrating we act with trust and integrity. At banks this means the interests of customers and clients must be at the very heart of every decision made.”
Perhaps the general disenchantment with high street banks is why we’ve seen the launch in the UK of several new contenders, all of which have seen an opportunity, though conditions are tough: Metro Bank, which breaks with long-held tradition by opening seven days a week; the British bank Aldemore; and the RBS-backed Shawbrook. They believe they can be modern banks with the values of the past, issuing loans without computer scoring and using customers’ own money as collateral: how revolutionary.
How can financial brands win back consumers’ trust? What do consumers want from banks? I’d say they want fairness in financial decisions; clarity when it comes to account interest rates and conditions; and to feel the bank is trying to save them money rather than take money from them. Personally I’d like to be told when the interest rate on that snazzy new account is about to come down – so I can decide whether to move my money. In short, I’d like the bank to be on my side in a scary world.
But considering the low levels of regard many people now have for banks, and the recent pain some have experienced when having their houses repossessed, their loans refused and, back in 2008, queuing to get their money back from Northern Rock, banks will have their work cut out winning back consumers trust.
But the Buddhists say that you can turn poison into medicine; banks new and old, therefore, have the opportunity to transform a toxic situation. Here are my 3 top tips that could get them there: Read more…