UK Banking Industry "Hammered" By Recent Scandals - New Survey

Eliane Chavagnon
in London
10 October 2012

News Analysis

 Over two-thirds (70 per cent) of the UK's wealthy population have less faith in the banking industry compared to a year ago, with an overwhelming 83 per cent of high net worth individuals ranking it equally as or more corrupt than politics and journalism, according to a new survey.

The report by Duncan Lawrie was based on a survey involving over 1,000 UK HNW individuals (those with over £250,000/$400,350 in investible assets). It highlighted how the bonus culture - putting short-term profitability ahead of customer welfare - was the most significant contributor to the reputation of the banking industry hitting new lows, with recent banking scandals, including the Libor-rate fixing scandal, the secondary hook.

Well-over half (71 per cent) believe the banking industry is corrupt. Specifically, 83 per cent say it is equally as or more dishonest than politics and journalism, citing the expenses scandal and the Leveson enquiry respectively.

Given the findings, it is somewhat unsurprising to learn that 76 per cent of those surveyed said they would prefer personal banking - enabling them to get to know their banker - as opposed to the modern "de-humanised" approach. Meanwhile, raising the issue of security, almost one in 10 of those surveyed said they had already had their bank accounts hacked into, 18 per cent of whom stated their bank did not recognise the change in spending.

“The retail banking industry has changed beyond all recognition in the last three or four decades. Consumers have had enough," said Matthew Parden, managing director at Duncan Lawrie. "In this age of internet and mobile banking it may seem odd to talk about a return to old fashioned values, but that is what the sector has to do," he added. "The values that held resonance in the time of Captain Mainwaring’s branch at Walmington-on-Sea hold as much weight now. A return to personalised banking is long overdue.”

The research was conducted by YouGov between 14 and 16 August.