An interesting poll was conducted by The New York Times and reiterated on Yahoo’s Finance section yesterday regarding the level of trust consumers place in their current bank. Perhaps not surprisingly, the larger banks fared much worse than the smaller institutions.
Forrester’s annual Customer Advocacy rankings, ranks nearly 50 financial services firms in the United States by the percentage of each firm’s customers who agree with the statement: “My financial provider does what’s best for me, not just its own bottom line.” The results are based on a survey of about 4,500 consumers.
As we mentioned above, the largest institutions performed terribly in this study and have apparently been performing poorly in these regards for the last seven years (even before the bank collapse of 2008).
“…large banks have generally been at the bottom of the list since the survey was initiated seven years ago, and many of the banks have alternated between the bottom spots year to year…”
Top 5 Least Trusted Banks in the Country:
1) HSBC – Among HSBC customers, only 16 percent said they agreed with the statement.
2) CitiBank – Among CitiBank customers, 26 percent said they agreed with the statement.
3) Fifth Third – Among Fifth Third customers, 27 percent said they agreed with the statement.
4) TD/Commerce – Among TD/Commerce customers, 28 percent said they agreed with the statement.
5) Capital One – Among Capital One customers, 29 percent said they agreed with the statement.
These results coincidentally came out only a couple of weeks after President Obama’s proposal to send the repaid TARP money to small banks.
Most of the distrust stems from the financial meltdown of 2008 (and perhaps rightfully so) however a number of new concerns have arose recently. Some of these include new checking account fees, increased credit card APR’s and a lack of customer service on mortgages and home loans.
We would recommend stopping by your neighborhood credit union or community bank if you’re in the market for a new bank account. Usually not-for-profit credit unions offer low/no fee products with slightly better rates, but may be exclusive depending on your demographic.