Home Finance UK high-street banks are no longer trusted by nearly half of their customers

UK high-street banks are no longer trusted by nearly half of their customers

by maria
gawdo
  • Banks make their money using “hidden” charges, say many of those surveyed
  • Concern over the safety of savings is widespread, with many now limiting what they put into traditional banks 
  • Some – particularly young people – are so concerned they prefer to keep cash at home
  • People feel banks do not put customers first, and many are now seeking alternative ways to save and spend

London – UK high-street banks are widely distrusted and prioritise profit, not customers, according to a new consumer survey commissioned by non-fiat banking platform Tally.

Four in ten (42%) of those polled believe traditional banks make their money through “hidden charges”, while 51% say the big banks do not put customers first.

Distrust of mainstream banking is widespread but more prevalent in the younger generations who are open to alternative financial services and products.

Of the 2,001 UK adults surveyed by Opinium, almost a third (28%) say they do not trust high street banks. This rises to 38% of 25-34-year-olds.

Financial volatility during the last 12 months, which has seen inflation rising and the Government pumping billions of newly-created pounds into the economy to try and stabilise the UK, makes many think their money is not safe in the current system – 33% fear for their money. This rises to almost half (48%) of 18-24-year-olds.

Some are so worried they prefer to keep their physical cash at home instead of trusting a bank. Overall, 16% keep their cash at home, rising to almost a third (30%) for the 25-34-year-old age bracket. In addition, nearly a quarter (22%) limit the savings they keep in banks because they do not trust the banking system

Many of those questioned are open to using alternative forms of money and currencies (38%) if the safety of their money is guaranteed. More than half of 18-24 year-olds (53%) would use an alternative currency to protect and spend their savings.

Cryptocurrencies such as Bitcoin were not seen as reliable, with only 14% saying they were safe to be used as money. However, an alternative currency backed by a physical asset – such as gold – was seen as a safe alternative, with 56% opting for this as their favoured alternative.

Cameron Parry, Founder and CEO of Tally, said:
“There’s a disturbing lack of transparency when it comes to the incumbent banking system and it’s understandable why most people have little idea of how they are being used by banks to make money.

“People should be able to rely on the money in their bank account to maintain its value over time and stay in their control at all times.

“The coming consequences of rampant money printing and near-zero interest paid on savings, together with the uncertain economic outlook, means it’s crucial to protect your earnings from being undermined by inflation. And this is where fiat currency banking fails.

“Whilst the data tells us that people are not only misled or misunderstanding the fiat currency fractional-reserve banking system, it is encouraging that they are looking for mainstream alternatives, and Tally is proud to be a leader in that changing landscape.”

Tally is a revolutionary banking platform designed to protect customers, not banks. The platform uses physical gold as digital currency and has been developed in response to economic uncertainty, inflation, and a climate where banks are paying almost nil interest in traditional savings accounts.

As the pound and other government-issued currencies (also called fiat currencies) lose value, Tally maintains its purchasing power over time, thereby increasing in value relative to pounds. One Tally currently equals just over 4 pence at the current gold price.

Tally works just like a regular bank account, so you can transfer money into your account, use the app to make transfers out, or use the Tally Debit Mastercard to pay merchants and use ATMs to withdraw cash or change your PIN number.

But because a Tally account is not denominated in government-issued (fiat) currency, such as pounds, it’s a much safer form of banking, according to the team behind the platform.

38% of 25-34 year olds don’t trust high street banks

54% of 55-64 year olds believe that banks make money from ‘hidden’ charges

Over half of 18-34 year olds would use alternative currencies to protect & spend their savings

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