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Consumer confidence in banks is low
22 May 2008
Faith in banks is at all time low due to factors including the global credit crunch, claims a north-east building society.
According to Newcastle Building Society, the credit crunch and the situation at Northern Rock are not the only reasons why consumer trust in banks has begun to plummet.
Steve Urwin, senior marketing executive at Newcastle Building Society, said: "Even prior to the events of last summer, stock market performance was uncertain and so we had already seen investors moving away from any high-risk products."
While one in ten savers are preferring to stash their cash under the mattress, according to the building society, consumers should be aware that money left at home will see its value reduced by inflation.
"Not only will savers not see their money grow, they will actually eventually see it decrease in terms of relative value," said Mr Urwin.
Research by Fool.co.uk revealed that one in seven people are not convinced their bank will endure the current economic slowdown.
