UK: Customers Punish Big Banks

Move Your Money is helping UK customers move away from the big banks

It seems that people in the United Kingdom are so sick of the major banks they are hitting them where it hurts and taking their business elsewhere.

Sick and tired of a seemingly endless run of scandals, mismanagement and appalling customer service, customers are moving their money into smaller, more regional banks as well as building societies and credit unions. Huge bonuses for the CEOs and other executives of the big banks has also been a huge motivating factor for many.

It’s estimated that the five biggest UK banks – Barclays, HSBC, Lloyds, The Royal Bank of Scotland and the much-hated Santander – lost close to 2.5 million customers between them just in the year 2012.

There is such an appetite to let the big banks “have it” that there is a highly popular “Move Your Money” movement. The website enables visitors to not just find a better option, but helps them through the process of changing and then encourages them to not only spread the word to family and friends, but to put the pressure on their local politicians to support banking reform! Great stuff!

And with new regulations coming into effect later this year that will make it even easier – and faster – to switch bank accounts, it looks like the big banks are set for further, well deserved misery. It’s great to see people taking direct action like this: well done, UK!

Aside from the Move Your Money site linked to earlier, Ethical Consumer has a guide where it’s possible to select a bank according to specific criteria: environmental record, political issues etc. They also have a table where banks are scored – Barclays and Sainsbury’s fare the worst.

More on this over at the Guardian.

Philip

4 Comments

  1. And not a moment too soon, in my opinion! The banking institution has gotten way out of hand. They keep charging fees and downgrading services. It’s our job to remind them that they need us more than we need them, not the other way around as it’s evolving. Less than a hundred years ago, banking was a luxury, not a necessity. We need to remind them that we the people are doing them a favor by letting them hold our money for us!

  2. My husband and I did the same thing here in the states a couple of years back when the big banks started chattering about fees on online bill pay and debit cards. Apparently a lot of us did that because the banks backed down!

  3. Big banks can’t think of enough methods to scam us. Some of them have so many fees, you can’t even count them! Not to mention it gets confusing when they keep modifying their services. I agree with Andrew, a bank account is a necessity nowadays and if we can find a better deal, we should make sure we take advantage of it!

    • Absolutely, and I think people are starting to do something about their dissatisfaction. It used to be a major hassle to change your bank, but as people discover that it’s much easier these days I think we will see some big changes in the banking industry,

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