Movehut recently reported that Marks and Spencer is to launch its own current bank account. Although the accounts will cost £15 or £20 to own, people welcomed the high street retailer into the banking market. But why would people choose to bank with a shop that has just joined the market, rather than a bank whose sole purpose is to offer this service? Have people lost faith in their high street bank?
“Marks and Spencer is a brand very well trusted by lots of faithful customers and the retailer could attract a lot of people desperate to escape high street banks who have had a really bad reputation for customer service over the past few years,” said David Black, banking specialist at financial data company Defaqto.
Comparison website, Uswitch.com conducted a survey of 1300 people and found that nine out of ten people felt their bank didn’t offer them the best value for money and only 37 per cent were happy with the customer service that they receive in branch. They found that 68 per cent feel that those new to the banking market would care more about their customers.
But when asked about banking with a high street store, 75 per cent of people said they would trust putting their cash into an account with John Lewis. In addition, 46 per cent of people would trust Waitrose with their money – which is also owned by the John Lewis Partnership. 36 per cent favoured Asda, while 26 per cent would want to bank with Morrisons – if they entered the banking market.
Speaking of the results of the survey, Michael Ossei, a personal finance expert at Uswitch.com said: “It is a telling reflection of the UK banking industry that consumers are willing to put their trust in brands that have no previous banking experience.
“While traditional high street banks are still generally viewed as the most secure and experienced providers to bank with, new entrants are hot on their heels and winning customers over with their untarnished reputations and promise of superior rates and customer service.”
Do you trust your high street bank, or would you prefer to bank with retail commercial properties like John Lewis and Asda?
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