Americans Are Losing Trust in Their Banks

Americans Are Losing Trust in Their Banks

November 4, 2014         Written By John H. Oldshue

Half of American adults say they have lost trust in their banks over the last few years, according to a recent Harris Poll. By comparison, 49% of the respondents said their trust in credit unions has remained the same in recent years.

Banks were not the only institutions to receive a low rating in the poll. Americans also reported losing trust in Wall Street and mortgage lenders, both seeing a 57% decline.

One out of 13 households are unbanked, based on a 2013 study by the FDIC. This equates to nearly 10 million households.

There are several factors that determine how likely Americans are to trust a financial institution. 66% of poll participants said personal experience is the most important factor, while 56% said they looked at the quality of customer care, quality of products and services, or money charged in fees.

Local banks and credit unions with a smaller area of influence have higher trust levels than nationwide financial institutions. Over three-quarters of those surveyed reported a great deal of trust for local credit unions, while 70% said the same for local branches of a regional bank. Only 50% of Americans trust large national banks.

Online-only banks are fighting a battle in establishing trust with a majority of Americans. Only 39% of the respondents have any trust with online-only banks. Not surprisingly, Millennials and Gen X’ers (42%) have more trust in these institutions than older adults (30%). In addition, consumers in the East and West are more likely to trust online-only banks than respondents in the South or Midwest.

The poll surveyed 2,537 Americans between August 13-18, 2014.



The information contained within this article was accurate as of November 4, 2014. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


john-oldshue

About John H. Oldshue

John Oldshue is the creator of LowCards.com. He worked for over 15 years in television and won an Emmy award for his reporting. He covers credit card rate issues for LowCards.com.
View all posts by John H. Oldshue
Featured Limited/No Credit
Top Features : No annual fee; reports to major credit bureaus; access to higher credit line after making first 5 monthly payments on time
Featured Fair Credit Card
Top Features : No annual fee; access to higher credit line after making first 5 monthly payments on time
Featured Low Interest Card
Top Features : 1.25X miles on every purchase; no annual fee; bonus of 20,000 miles once $1,000 is spent in first 3 months
Featured Cash Back Card
Top Features : 1.5% cash back on all purchases; $150 bonus after spending $500 in first 3 months
Featured No Annual Fee Card
Top Features : Earn cash back TWICE. 1% when you buy plus 1% as you pay; 0% APR for 18 months on balance transfers
Featured Bad Credit Card
Top Features : Perfect credit not required; Reports to major credit bureaus