"Radical shift" needed in banking culture
By myfinances.co.uk staff
Britain's banks need a radical shift in the way they do business to ensure the needs of their customers are put before their own, City minister Lord Myners has said.
Giving evidence to the Future of Banking Commission organised by consumer group Which?, he warned that unless financial institutions can "look beyond profitability", there is little hope of the industry improving its image in the eyes of the public.
Lord Myners added that customers would benefit from more decisions being made in-branch instead of over the phone, as well as greater competition in the industry and a focus among banks on long-term growth rather than short-term sales.
His call for change was echoed by Financial Services Authority (FSA) chairman Lord Turner and its outgoing chief executive Hector Sants.
Mr Sants told the commission that the regulator is prepared to step in if banks consistently fail to put customers first.
However, Lord Turner said: "We have pursued the Treating Customers Fairly principle and can push the banks to change, but they will have to want to change."
A January poll by Money.co.uk found that just seven per cent of Britons completely trusted their bank to treat them fairly.
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