COLLAPSING consumer confidence in Britain’s big banks in the wake of a string of scandals has resulted in hundreds of thousands of people moving their accounts away from them to smaller financial institutions, according to a report.
And it says a further 14 million could switch in the coming year as dissatisfaction with the main high street names gathers momentum.
Figures from campaign group Move Your Money show building societies, credit unions and co-operatives all reported a sharp rise in new business over the past 12 months, with 500,000 people moving in the first half of this year.
In the past quarter, the Building Societies Association reported a 78,000 increase in savings accounts. The Co-operative Bank has seen a jump of 43 per cent in new accounts in the past year and Credit Unions have welcomed 20,000 new members.
Laura Willoughby, chief executive of Move Your Money, said: “Public trust in the big banks has collapsed. The reputation of one of our leading industries is in tatters.”
She added: “Ultimately, customers are on the front line of the battle to save British banking: by moving their money to banks which are fair and transparent, they are forcing banks to think twice about the way they behave.”