Banks trusted most to provide basic bank account services
Banks are more trusted than supermarkets to provide basic bank account services.
While high street banks have traditionally dominated the UK basic bank account sector, the likes of Sainsbury's and Tesco now also offer alternatives as they move into the financial product market.However, research conducted by moneysupermarket.com shows the overwhelming majority of consumers would still rather have their money looked after by the traditional high street elite than a company more renowned for selling fruit and vegetables.
This is despite the fact that the banking sector has been dragged through the mud recently in the wake of its role in the onset of the credit crunch and ensuing recession.
According to a survey conducted by the website, just four per cent of UK consumers would rather trust a supermarket brand with their money than a bank - despite the tainted reputation of the likes of Royal Bank of Scotland and Lloyds.
Meanwhile, just ten per cent of respondents think a supermarket can provide a better basic bank account service than a bank.
One of the reasons for this is that many consumers are unhappy at the way supermarkets are encroaching into other sectors of the economy - with 41 per cent expressing their concern at what they see as supermarket overexpansion.
"The last couple of years have been extremely damaging to the public's confidence in banks, and this clearly opens a door for the likes of Tesco and Sainsbury's," commented Kevin Mountford, head of banking at moneysupermarket.com.
"However, our research shows banking brands still hold far more trust than supermarket brands when it comes to managing the UK's finances."
In contrast to supermarkets, the Post Office has proved a popular basic bank account provider, with the British Bankers Association revealing last month that 107,000 Post Office accessible accounts were opened in the second quarter of 2009.
Written by Tobias Bluth
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