Pandemic prompts more trust in banks

You can find more data, insights and intelligence by downloading  AltFi’s Digital Banking State of the Market Report 2021, which is available for free here.

Trust in UK banks has risen over the past year, according to research by AltFi.

Despite the financial uncertainty prompted by the pandemic, across several different areas trust appears to be rising both in neo banks such as Monzo and Starling Bank as well as large high street incumbents like HSBC, Lloyds and Barclays.

The Opinium and AltFi Digital Banking Study 2021, which surveyed a nationally representative sample of 2,000 UK adults, found 26 per cent saying their trust in digital banks has improved in the last 12 months, while 23 per cent said the same about large banks.

The proportion who remain distrustful of neobanks remained almost stable at 25 per cent (compared to 26 per cent last year), however.

Overall nearly two-thirds (64 per cent) said they trust large banks such as HSBC and Lloyds to keep their money safe, an increase from 57 per cent in 2020.

While markedly lower for neobanks such as Monzo and Starling Bank, newer digital players did also see an increase in levels of trust to keep cash safe.  Almost exactly one third (33 per cent) said so, up from 29 per cent one year ago.

The gap in expectations between large banks and digital banks to provide good value lending products is noticeably lower (45 per cent vs 31 per cent respectively).

Download the full report here.