According to a new report out this week, customers are much less likely to trust big banks than credit unions and regional banks.
In its annual customer advocacy rankings, Forrester Research, the Cambridge-based research firm, asked 4,500 customers at 50 banks if they agreed with the statement "My financial provider does what's best for me, not just its own bottom line."
Forrester ranked the financial institutions based on consumers' responses, and the nation's largest banks were overwhelmingly the worst performers, with only around a third or fewer of customers at big banks saying that they believed their financial institution put customers' interests first. By contrast, about 70 percent of credit union customers responded positively to the statement.
Bill Doyle, a Forrester VP, told the NYT that the pattern of distrust toward the mega banks is nothing new. In the seven years the company has been conducting the survey, he said, big banks have repeatedly landed at the bottom of the list:
"Part of it is that the banks are preoccupied with their bottom line. They are public institutions who are in business to make money for their shareholder and inevitably, that shows to customers," Mr. Doyle said.
Check out the seven least-trusted banks in America, according to Forrester:
Bank of America ranked seventh worst, with 33 percent of customer respondents agreeing that the bank “does what’s best for me, not just its own bottom line.”
Chase ranked sixth worst, with 31 percent of customers saying they believed the bank acted in their best interests.
Capital One was fifth from the bottom on the Forrester list, with 29 percent of its customers agreeing that bank did not put its bottom line before the interests of its customers.
Customers of Toronto-based TD/Commerce Bank were even less satisfied, with 28 percent responding that they believed their financial provider acted in their best interests.
Fifth Third, the Ohio-based regional bank, landed three spots from the bottom on the Forrester list, with 27 percent of customers agreeing that the bank “does what’s best for me, not just its own bottom line.” Photo Credit: Flickr: zyphbear
Rated second worst, with 26 percent of customers saying the bank looked out for their interests, was Citibank.
HSBC ranked dead last in the survey, with just 16 percent of customers agreeing that the London-based bank worked more in their interests than in its own. The result was 10 percentage points lower than the bank's score last year, and the lowest ever in the United States.