According to an online survey conducted by independent financial advice website Fool.co.uk, an increasing number of UK consumers are looking to switch banks. More specifically, the research revealed that four out of five customers of the 'big five' banks are ready to leave for a smaller rival.
The survey had over 1,000 respondents and found that 80% of customers of the ‘big five’ banks – namely HSBC, Royal Bank of Scotland, Barclays, Lloyds TSB and HBOS – stated that they would not hesitate to leave for a smaller bank. Royal Bank of Scotland fared marginally better than the rest, with only three out of four of its customers saying that they may defect.
The research also revealed that banks cannot rely on customer loyalty, with over half of the respondents poised to switch having been with their bank for over 10 years. It also confirmed that consumers who have previously switched banks are more likely to do so again. However, two out of five people who have never switched before are not prepared to switch.
David Kuo, head of personal finance at Fool.co.uk, said: There is tremendous tension between banks and their customers. This has not been helped by the embarrassing exposure of punishing charges at a time when banks are also reporting huge annual profits.
Our survey shows how delicate the situation is with four in five customers prepared to switch to one of the smaller banks if they need to. The prospect of customer backlash is likely to buy us some time before banks actually carry out their threat of imposing fees.