Saturday, June 23, 2007

Trust in Banks Declines: UK distrust rises 47% to 71%

Interesting study indicates banks cannot substitute a virtual presence for local branches and a commitment to community.
Nearly three-quarters of UK customers do not trust their retail bank, and the more virtual a bank is, the lower the level of trust, according to a survey by Unisys.,..When Unisys asked the same questions in 2005 and 2006, 47 per cent of customers indicated that they did not trust their retail bank. This year the figure had risen to 71 per cent....the attributes most cited for eroding trust are 'disrespectful attitudes', 'poor privacy', 'weak IT' (such as websites), 'poor corporate governance' and a 'lack of investment in the local community'.
I'm just speculating here, but I'd say the constant drumbeat of security breaches and phishing scams involving online banking are having an erosive effect on trust.