High Street Banks Deliver Best of Bad Service

One of the things most of us don’t change during our adult life is our bank. This has been proven to a certain extent, as two years ago the Office of Fair Trading discovered 64 per cent of consumers had always had the same account. As a result, many bank clients are finding both the rates not up to standard and faulty service.

A recent survey found that the new, smaller banks were offering better service overall, compared to the old high street bank names, most people are familiar with. About 43,000 people were surveyed about their experience with 31 leading banks and building institutions. The survey took things like current accounts, savings, mortgages and credit cards into account, to produce an overall satisfaction score.

High-street banks face break-up under commission plans

Retail and investment should be split, to avoid a future taxpayers' bailout, says finance chief

ritain's high-street banks may be broken up to protect taxpayers from future collapses, under radical plans being considered by the Independent Commission on Banking.

High street bank returns poised to fall

UK bank shares are likely to resemble those of low-growth utility companies if reforms proposed by the Independent Commission on Banking are implemented – but will still offer the prospect of rising dividends, analysts say.

New measures to ringfence bank’s high-street operations from their investment banking arms will be “game changing” and reduce total returns for shareholders, according to KPMG. “In many respects we are seeing a return to a more simple 1940/50s style of retail banking where it is perceived as more of a basic utility with low return on equity for shareholders,” said Jon Pain, co-head of the firm’s regulatory centre. “The really tough question is: can they generate earnings from the activities and services in the ringfenced bank that will provide a decent return?”