Supermarket plans to take over from high street banks have been dealt a blow by a new study which claims only about a tenth of consumers trust retailers more than banks to handle their finances, although some established brands are making inroads.
The survey, by Rostrum Research, quizzed 2,000 UK adults on where they would feel comfortable buying financial products and getting financial advice. According to the findings, 51% of respondents said that they do not trust retailers any more than traditional financial services providers, while 38% indicated that they trust banks and retailers to the same degree.
Only 11% of Brits trust retailers more than banks to handle their financial affairs.
When asked what would persuade them to choose a particular retailer over another for financial products, 40% said price was the most important factor, followed by an existing relationship with that retailer (29%).
Rostrum Research chief executive Mark Houlding said: “New entrants are looking to shake up the UK financial services market. Supermarkets and new types of financial services providers are attempting to take market share from the established players – but our research suggests that winning the hearts and minds of consumers will not be easy or straightforward.
“That said, by combining well-known brands with an established store network – a handful of these retailers, such as Tesco (33%), M&S (21%) and John Lewis (20%), are making progress in encouraging customers to trust their financial services offerings, particularly the all-important current account product. However, it remains to be seen whether these new players are able to really take a large share of the market.”
